Qatar is the largest supplier of liquefied natural gas to India where natural gas consumption is projected to rise by 1.5% a year between 2010 and 2020
By Pratap John
Bilateral trade between Qatar and India grew 2.1% and reached $16.7bn in the 2013-14 financial year, data show.
In 2012-13, the two-way trade between Qatar and India stood at $16.3bn, according to data provided by the Indian Embassy. And in the fiscal 2011-12, the trade totalled $13.7bn.
However, the balance of trade is in Qatar’s favour, data indicate. In 2013-14, Qatar exported goods worth $15.7bn compared with $15.6bn in the 2012-13 fiscal.
Qatari imports from India were worth $989mn in 2013-14 and $687mn in 2012-13.
A report by QNB shows India is currently the third top export destination for Qatar. In September, India, which is Asia’s third largest economy, accounted for 14.5% of total Qatari exports.
Total exports in September stood at QR36.1bn and imports at QR9.8bn, QNB said.
Japan topped the export destination in September, accounting for 22.2% of Qatar’s exports, followed by South Korea (17.5%).
Qatar and India have a strong relationship, particularly in the energy and petrochemicals sector. Trade between the two countries has been steadily growing.
Currently, Qatar is the largest supplier of liquefied natural gas (LNG) to India. Also, there is a large and expanding market for Qatar’s oil and petrochemicals in India.
India’s natural gas consumption is projected to rise by 1.5% a year between 2010 and 2020, while production from local fields will decrease by an average 1.1% every year during that period, according to the US Energy Information Administration.
Many Indian companies such as L&T, Tata Projects, Voltas, and Punj Llyod have active presence in the Qatari market through partnerships.
India’s GDP grew at 5.7% in the first quarter of 2014-15 to exceed expectations. The manufacturing sector posted a 3.5% growth. India’s economic growth stood at 4.7% in 2013-14 and the consumer price index-based inflation rose to 7.96% in July 2014.
India’s current account deficit (CAD) for the fiscal first quarter - April to June - narrowed sharply to 1.7% of gross domestic product from 4.8% of GDP in the corresponding period of 2013-14. Fiscal deficit during the 2013-14 fiscal year was equivalent to 4.5% of GDP and it is targeting 4.1% of GDP in the current fiscal year.
According to a recent HSBC update, the Indian economy appears to have perked up since the election of Narendra Modi as Prime Minister in May, with matters being helped by easing domestic inflation, which has brought an end to the tightening of monetary policy by the Reserve Bank of India.
India’s growth rate is expected to top 6% in 2015, and could well be only a touch shy of China’s, HSBC said.