India-Kuwait Relations: Modernizing the Agenda for Ancient Ties
Context:
Prime Minister Narendra Modi’s visit to Kuwait in 2024 marked a significant milestone in India-Kuwait relations. This visit, the first by an Indian Prime Minister in 43 years, aimed to rejuvenate the historical and strategic ties between the two nations.
Key Areas of Discussion During PM Modi’s Visit:
- Economic Engagement: Expanding bilateral trade and investment, with a focus on sustainable development.
- Energy Cooperation: Enhancing ties in hydrocarbons and exploring renewable energy projects.
- Cultural Exchange: Boosting people-to-people linkages through cultural events and institutional collaborations.
- Geopolitical Collaboration: Aligning on regional stability, counterterrorism, and climate action.
Energy Partnership: Crude Oil and Beyond
Kuwait continues to be a vital energy partner for India, supplying approximately 3% of its energy needs. India imports significant quantities of crude oil and LPG, with bilateral discussions exploring new avenues of collaboration, including:
- Oil and Gas Expertise: Indian companies like L&T and Kalpataru Power Transmission contribute to Kuwait’s oil and gas infrastructure.
- Renewable Energy Transition: Kuwait’s in-principle agreement to join the International Solar Alliance underscores shared goals in clean energy.
- Strategic Oil Storage: Proposals for Kuwait to store crude oil in India’s underground facilities highlight trust and long-term strategic planning.
Economic Relations: Trade and Investment
Trade remains a cornerstone of India-Kuwait relations, with bilateral trade surpassing $10 billion in FY 2023-24. Key highlights include:
- Growing Indian Exports: Exports from India rose to $2.1 billion, a 34.7% year-on-year growth, driven by aircraft parts, cereals, and organic chemicals.
- Kuwaiti Investments in India: Kuwait Investment Authority (KIA) has invested over $10 billion in India, focusing on equities and infrastructure. Indian firms like Shapoorji Pallonji and Tata are actively engaged in Kuwait’s economic landscape.
- Potential Areas for Growth: Discussions emphasize mutual investment opportunities in infrastructure, technology, and renewable energy.
Cultural Relations and the Indian Diaspora
India and Kuwait share a deep cultural affinity, enriched by the million-strong Indian diaspora—Kuwait’s largest expatriate community. Contributions include:
- Cultural Exchange: Events like the ‘Festival of India’ and weekly Hindi radio programs foster cultural ties.
- Indian Cuisine and Bollywood: The popularity of Indian movies, music, and food, including basmati rice and Alphonso mangoes, enhances people-to-people connections.
- Education and Institutions: With 26 CBSE schools serving over 60,000 students, India is also pursuing recognition of its universities in Kuwait.
Geopolitical and Geostrategic Dimensions:
Kuwait’s strategic location and role in the Gulf Cooperation Council (GCC) make it a critical partner for India in the Gulf region. Key dimensions include:
- Regional Stability: Collaborative stances on issues like the Israel-Palestine conflict and terrorism.
- Strategic Partnerships: Strengthening ties with GCC nations through Kuwait’s presidency of the GCC Supreme Council.
- Energy Security: Joint initiatives to secure energy supply chains and expand renewable energy cooperation.
Areas of Cooperation and Divergence:
Cooperation:
- Hydrocarbons and Renewable Energy: Ongoing collaboration in oil, gas, and solar energy.
- Labour and Manpower: Ensuring welfare and rights of Indian workers in Kuwait.
- Healthcare and Pandemic Response: Solidarity during COVID-19 through vaccine supplies and oxygen shipments.
Divergence:
- Trade Balances: Addressing trade imbalances and diversifying trade portfolios.
- Labour Rights: Resolving issues related to labour laws and recruitment processes for Indian workers.
Future Areas of Cooperation:
- Digital Economy: Collaboration in fintech, digital infrastructure, and cybersecurity.
- Climate Change: Joint initiatives in disaster-resilient infrastructure and sustainable practices.
- Space Technology: Strengthening ties through satellite launches and research collaborations.
- Education: Expanding academic exchanges and setting up research centers.
