INDIA-KUWAIT RELATIONS

GS 2 – INTERNATIONAL RELATION 

Context: The visit of India’s Prime Minister to Kuwait marks the first visit by an Indian PM in 43 years, with the goal of enhancing bilateral cooperation and addressing gaps in India’s engagement with the Gulf Cooperation Council (GCC).

Strategic Importance of Kuwait

• Geopolitical Position: Kuwait shares borders with Iraq and Saudi Arabia, hosts critical American military bases, and acts as a neutral mediator in regional conflicts.
• Economic Strength: Kuwait holds the sixth-largest oil reserves globally, is a founding member of OPEC, and manages a sovereign wealth fund valued at $924 billion (as of March 2024) through the Kuwait Investment Authority (KIA).

India-Kuwait Relations

• Historical Ties: Diplomatic relations were established after Kuwait’s independence in 1961. The Indian rupee was used as legal currency in Kuwait until the same year.
• Trade and Energy: The bilateral trade between India and Kuwait reached $10.47 billion in FY 2023-24. Kuwait is the sixth-largest supplier of crude oil to India, providing 3% of its total crude oil needs.
• People-to-People Relations: Over one million Indians live in Kuwait, forming the largest expatriate community. Cultural exchanges such as the “Festival of India” (2023) and the “Namaste Kuwait” radio program (2024) are important highlights.

Opportunities to Enhance Bilateral Ties

• Strategic Partnerships: A comprehensive agreement is being developed, covering defense, infrastructure development, and initiatives under Kuwait’s ‘Vision 2035.’
• Investment Collaborations: An agreement between KIA and India’s National Investment and Infrastructure Fund (NIIF) aims to foster mutual growth.
• Infrastructure and Education: Plans for the establishment of IITs, hospitals, and modern infrastructure projects in Kuwait.
• Space and Climate Cooperation: Potential for satellite launches and collaborations under the International Solar Alliance (ISA), along with disaster-resilient infrastructure initiatives.

Challenges in Bilateral Relations

• Limited Engagement: There has been a stagnation in high-level visits for decades, with cooperation primarily focused on trade and energy.
• Air Traffic Barriers: Kuwait faces obstacles in obtaining additional flight seats due to unmet bilateral quotas.

Way Forward

• Comprehensive Agreements: Signing strategic, defense, and investment agreements will deepen cooperation.
• Infrastructure and Energy Support: India can assist Kuwait’s Vision 2035, while Kuwait can contribute to India’s energy needs and growth sectors.
• Cultural and Educational Ties: Strengthening the Indian community and fostering goodwill through institutional collaborations and exchange programs.
• Sectoral Collaboration: Expanding partnerships in space technology, renewable energy, and healthcare to diversify the bilateral relationship.