India targets Qatar, Gulf equity in energy shift

South Asian nations are pursuing joint equity investments with Middle Eastern sovereign funds to fund India's expansion of refinery infrastructure. Indian Ministry of Petroleum and Natural Gas Minister Hardeep Singh Puri revealed that significant Middle Eastern energy producers like Saudi Arabia and the UAE are keen to invest in the nation's refining sector.

This move aligns with India's goal to raise national refining capacity from 5.4 million barrels per day to over 6.2 million bpd to meet growing domestic fuel demands. In addition to these direct proposals, India is also reaching out to Qatar to secure financial backing across the broader energy sector. During Puri's visit to Doha in April 2026, discussions focused on strengthening bilateral energy ties, trade, investment, and maritime supply chain security.

They emphasized the importance of maintaining stability in global fuel supplies and ensuring uninterrupted maritime trade even during regional disruptions. Financial ties between the two nations are reinforced by a longstanding LNG supply agreement managed by Petronet LNG, which extends until 2028. The Joint Task Force on Investment (JTFI) was formed to explore opportunities in infrastructure, technology, and energy.

In 2023, bilateral trade amounted to $13.46 billion, making India Qatar's second-largest trading partner. Qatari exports to India primarily consist of LNG, liquefied petroleum gas, chemicals, petrochemicals, plastics, and aluminium products. Indian goods sent to Qatar include cereals, copper articles, iron and steel products, vegetables, spices, electrical machinery, construction materials, and manufactured textiles.

The Double Taxation Avoidance Agreement (DTAA) signed in 1999 governs income tax rates, with a 10% withholding tax rate on interest, royalties, and technical service fees, and a 5% rate on dividend payments for corporate investments of at least 10%. The Qatar Investment Authority (QIA), led by Sheikh Bandar bin Mohammed bin Saoud al-Thani, has made strategic investments in Indian energy firms, including a 25.1% stake in Adani Electricity Mumbai Limited and a 2.68% stake in Adani Green Energy Limited.