Qatar should look at more strategic investments in India’s key sectors: Expert

Doha: There is no denial that Gulf countries have huge sovereign funds at their disposal. Among them, Qatar accounts for the largest share. But India has not found the right way to attract those funds yet. 

In a panel discussion ‘Financing India — with focus on Qatar’, which was organised by Free Press Journal and SIES in association with Invest India recently, the need for synergizing investments requirements was discussed, where 1800 participants attended through YouTube and Facebook. 

The panelists for the session were H E Deepak Mittal, Indian Ambassador to Qatar; Dr. R Seetharaman, Group CEO of Doha Bank; and Gopal Balasubramaniam, Partner and Head of Audit at KPMG in Qatar. The session was moderated by R N Bhaskar and the closing remarks were delivered by Vaneeta Raney, head of BMM department, SIES. 

Commenting on investments, Deepak Mittal, said: “The exposure from the Qatar side to the Indian market is limited but it is increasing.” India has improved its ranking on the ease of doing business score and amended policies mainly related to the Finance Act which allows long-term investments by sovereign wealth funds (SWFs), especially in the priority infrastructure projects. Other measures were also being undertaken, and these will open up new opportunities for financing relationships between India and Qatar, stressed Mittal. 

Qatar Investment Authority (QIA) manages over $300bn worth of sovereign wealth funds globally. “2019-2020 has been a good year for India as far as getting the attention of QIA is concerned,” stated Gopal Balasubramaniam. “Prior to that, investments into India have been sluggish as investments did not do well in the past.” 

But Gopal is optimistic that QIA may revisit its India strategy and is presently on discussions for considering investing $1.5bn in Reliance Jio and might look at investing in the Unicorns as there is tremendous opportunity in India for the startup ventures. 

Understanding the pattern of the QIA funding model, Dr Mittal said, “There is good interest in the healthcare, capital market, technology, pharmaceutical, among other sectors (in the case of investments). But it looks at projects which are mature and have less interest in green and brownfield projects.” 

Commenting on greenfield projects in India, Gopal stated that India has been religiously investing in gas infrastructure to convert the country into a gas-based economy. “India’s gas consumption in the next 15-20 years will grow 2.5 times by 2040. About $120bn-$150bn investments are expected in the next five to six years. Around $300bn is expected in the next two decades’ in the gas sector alone.” Gopal added that while there are opportunities in the hydrocarbons sector, Qatar should look at more strategic investments in India’s key sectors under Atmanirbhar programme (self-reliant India programme) namely pharmaceutical, automobile, chemical and consumer electronics. 

While Dr Mittal and Gopal were suggesting ways to attract sovereign funds to India, Dr R Seetharaman suggested that India should work with Gulf countries to develop GCC (Gulf Cooperation Council) Development Bank or Gulf-India Development Bank and GCC NRI fund. He mentioned that managing $500bn paid-up capital, by GCC Development Bank or Gulf-India Development Bank, is an opportunity. “It is time that you convert the debt into equity.” Seetharaman further added: “I suggest the GCC NRI Fund. It can be set up using sovereign funds and NRI base.”

Globally, there are $6.6 trillion sovereign funds and from that $2.2 trillion lies in the Gulf. Qatar is managing around $300bn. Seetharaman suggested this is an opportunity that India should tap.