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Home / UPSC Editorials / India-Kuwait Relations

India-Kuwait Relations: Bilateral Visits, Trade & Indian Diaspora | UPSC Editorials

Last Updated on Dec 20, 2024
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In the realm of international diplomacy, the relations between India and Kuwait exemplify a historically robust and mutually beneficial partnership. With Prime Minister Narendra Modi’s impending visit to Kuwait on December 21-22, 2024, the first such visit by an Indian Prime Minister in 43 years, there is significant focus on reinforcing these multifaceted ties. The visit underlines the strategic partnerships, economic cooperation, and strong people-to-people ties that have conventionally marked the India-Kuwait relationship.

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Analysis based on 

Editorial Modi to visit Kuwait on Dec 21-22, first Indian PM to do so in 43 years published in The Indian Express on December 19th, 2024

Topics for UPSC Prelims

Bilateral Relations, Indian Diaspora, I2U2

Topics for UPSC Mains

Indian Foreign Policy, Kuwait’s role in Middle Eastern stability and its influence on India’s strategic interests.

About India-Kuwait Relations

India-Kuwait relations are characterized by deep historical roots, robust economic ties, and strong people-to-people connections. These relations date back centuries through trade and cultural exchanges. Since establishing formal diplomatic relations in 1962, the partnership has flourished, particularly in the economic sphere, with Kuwait serving as a crucial energy supplier to India and both countries engaging extensively in trade and investments. These relations have been further strengthened with the existence of the largest Indian expatriate community in Kuwait, as such. Recent high-level visits and institutional agreements

Historical Background of India-Kuwait Relations

India and Kuwait have a relationship tracing back to ancient times when they traded in spices, pearls, and textiles. Indian merchants regularly visited the shores of Kuwait and built strong trade and cultural relationships. Post independence, India and Kuwait had formalized their diplomatic relationship in 1962. The relationship developed on account of common economic interests with respect to the energy sector and was further fortified on account of strategic geopolitical concerns for both the nations.

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Bilateral Ties Between India and Kuwait

Strong economic, political, cultural, defense, educational, and healthcare collaborations characterize the total alliance.

Economic Relations

Kuwait is an important economic partner of India, with bilateral trade standing at USD 10.47 billion in FY 2023-24. The two countries have a very robust relationship in the energy sector as Kuwait is India's 6th largest supplier of crude oil and 4th largest of LPG. Indian exports to Kuwait touched an all-time high of USD 2 billion, while Kuwait Investments Authority's investments in India exceed USD 10 billion.

Political Relations

Political relationships are marked by periodic exchanges at the highest level and on strategic dialogues. These include visits from leaders such as Vice President Dr. Zakir Husain, Prime Minister Indira Gandhi, Vice President Shri Hamid Ansari. Recent engagements involved a meeting between Prime Minister Modi with Kuwait's Crown Prince and Foreign Ministerial Exchange for cooperation on multiple issues.

Cultural Relations

Cultural exchanges are the strong foundation of the robust India-Kuwait relationship. The two countries celebrate their common heritage through numerous cultural diplomacy exercises in the name of Indian festivals, films, and food widely celebrated and appreciated in Kuwait.

Defense and Security Cooperation

Defense and security collaborations between the two nations involve joint military exercises and training programs. These collaborations help strengthen maritime security, counter-terrorism, and intelligence sharing to stabilize the region.

Educational and Technological Cooperation

Both countries have programs for exchange on education and technological cooperation with joint ventures in research and development, higher education institutions, and training programs for enhancement of skill development.

Other Areas of Cooperation Between India and Kuwait

There are many focused initiatives to boost cooperation in areas such as healthcare investment, and human resources.

Healthcare Cooperation

Kuwait has, since time immemorial, enjoyed India's healthy healthcare sector through medical tourism; Indian hospitals and healthcare professionals have been in high demand. India has also provided Kuwait with some of the essential medicines and medical equipment during the COVID-19 pandemic.

Investment and Trade Enhancements

Several JWG are focused on specific areas such as trade, investment, education, technology, agriculture, and culture. The groups will help identify and implement practical steps to strengthen cooperation.

Human Resources and Employment

Kuwait employs a large number of Indian expatriates, who constitute the largest expatriate community in the country. This workforce contributes greatly to the economic development of Kuwait while, at the same time, benefiting from the employment opportunities provided by the Kuwaiti economy.

Indian Diaspora

The Indian diaspora is an integral part of Kuwait’s social and economic fabric. Over a million Indians reside in Kuwait, making them the largest expatriate community. They work across various sectors, including healthcare, education, construction, and domestic services. The Indian community in Kuwait actively participates in and contributes to the cultural and economic activities of their host country, fostering deeper bilateral ties.

Read the article on India UK Relations!

Strategic Implications of PM Modi’s Current Visit to Kuwait

Prime Minister Narendra Modi will be visiting Kuwait on 21-22 December, 2024. It is the first visit of an Indian Prime Minister after 43 years. It is important for several reasons:

  • Strengthening Diplomatic Ties: Direct engagement with Kuwait's leadership will reinforce political relations and pave the way for future strategic collaborations.
  • Economic Boom: Discourse will likely center around intensifying trade cooperation, but that too on other sectors except the oil sector, for instance, technology, healthcare, and education, thereby striking an equal economic balance.
  • Assurance of Energy Security: The visit is likely to reiterate Kuwait as an energy partner of dependability to ensure uninterrupted oil supply which is essential to sustaining the Indian economy.
  • Diaspora Engagement: Interaction with the Indian community in Kuwait is an opportunity to engage with expatriates who play a crucial role in bilateral relations and in addressing their concerns, hence strengthening people-to-people ties.
  • Institutional Agreements: The visit may lead to new agreements and the activation of joint commissions and working groups so that cooperation is focused and continues uninterruptedly in the various sectors.

Read the article on India's Look West Policy!

Importance of Kuwait to India

Kuwait is an important energy supplier and a major investor in India, and its importance in India's foreign policy cannot be overstated.

  • Energy Security: Kuwait is one of the top oil suppliers to India. Being an energy-hungry country, India relies heavily on imports. Thus, a stable relationship with Kuwait is essential for ensuring a constant supply of oil and LPG, which are essential for maintaining the growth of the Indian economy.
  • Economic Cooperation: The mutual economic interests are not limited to energy. Both countries have great trade relations and investments. What is remarkable is that Kuwait's sovereign wealth funds are in India's infrastructure projects and joint ventures in petrochemicals, fertilizers, and food processing.
  • Geopolitical Stability: Kuwait's strategic location in the Gulf and its ability to mediate regional disputes are fundamental for maintaining peace and stability, which aligns with India's broader interests in the Middle East.

Read the article on India-West Diplomatic Relations!

Issues Concerning India-Kuwait Relations

Labor rights for expatriate workers and trade imbalances are issues that the two countries must maintain focus on through diplomatic avenues.

  • Labor Issues: The diaspora contribution has otherwise been positive, but occasional frictions in the relationships stem from labor rights issues, wages, and conditions of work for Indian expatriates. India, for its part, is committed to improving the living and working conditions of Indian workers.
  • Trade Imbalances: While the bilateral trade is robust, the trade balance is often skewed due to the high volume of oil imports. Efforts to diversify trade and boost Indian exports can address this imbalance.
  • Political Dynamics in the Region: The volatile political dynamics of the Middle East can impact India-Kuwait relations, compelling both nations to navigate their foreign policies carefully to avoid conflicts and ensure sustained cooperation.
  • Bureaucratic Hurdles: Administrative and bureaucratic issues sometimes delay bilateral agreements. Economic and technological cooperation suffers because of that. The issues can be addressed by streamlining processes and improving institutional frameworks.

Read the article on India's Relations with its Neighbours!

Conclusion

The bilateral ties between India and Kuwait stand on a rich historical background, along with economic cooperation, cultural engagement, and strategic partnership. Prime Minister Narendra Modi is scheduled to visit Kuwait for which both the nations highly value their bilateral relationship. It will offer the chance to address the challenges that have already arisen, new areas of cooperation, and mutual commitments. With both countries in preparation for this high-level engagement, the visit is going to further cement the foundation for a prosperous and collaborative future, which will benefit not only the two nations but also regional and global stability.

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UPSC Practice Question
  1. Analyze the historical and cultural dimensions of India-Kuwait relations and their impact on contemporary bilateral ties.
  2. Critically assess the strategic importance of Kuwait for India in the context of energy security and geopolitical stability in the Gulf region.

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