India and Qatar are set to finalize the terms of reference for a proposed free trade agreement, with a trade deficit of $10.78 billion highlighted in a GTRI report. While energy remains a key aspect of the trade relationship, both countries recognize the need for diversification into new sectors. The report suggests expanding imports in chemicals, fertilisers, and metals, boosting exports of engineering goods, and exploring joint ventures in energy infrastructure to reduce the trade deficit and strengthen strategic ties.