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.
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Key Areas of Discussion During PM Modi’s Visit:Â
- 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.
