A New Era in India-Kuwait Relations

Context : Prime Minister Narendra Modi's recent visit to Kuwait marked a historic milestone as the two nations elevated their bilateral ties to a “strategic” partnership. This development signifies enhanced cooperation in trade, defence, and other areas while highlighting India’s growing influence in the Gulf region amidst evolving global dynamics.

A Brief Overview of India-Kuwait Ties

Background

• India and Kuwait share a long history of friendly relations, rooted in cultural and economic ties that have endured over time.
• India was among the first nations to establish diplomatic relations with Kuwait after its independence from the British Protectorate in 1961.
• Until 1961, the Indian Rupee was used as legal tender in Kuwait.

Current Dynamics

• Crude oil supplier: Kuwait is India’s sixth-largest supplier, meeting 3% of its energy needs.
• Trade growth: Indian exports to Kuwait exceeded $2 billion for the first time, while Kuwaiti investments in India surpassed $10 billion.
• Indian diaspora: Over 1 million Indians form Kuwait’s largest expatriate community, contributing significantly to its economy and development.

Highlights of the Prime Minister’s Visit

Historic Firsts

• First visit in 43 years: Modi’s two-day visit was the first by an Indian Prime Minister since Indira Gandhi’s visit in 1981.
• Civilian honor: Kuwait awarded Modi its highest civilian honor, ‘The Order of Mubarak Al-Kabeer,’ recognizing his contributions to strengthening bilateral ties.

Engagements with Kuwaiti Leadership

• Meetings with:
  • Amir Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah.
  • Crown Prince Sheikh Sabah Al-Khaled Al-Hamad Al-Mubarak Al-Sabah.
  • Prime Minister Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah.

Strengthening Bilateral Relations

1. Defence Cooperation:
   • Signed a comprehensive defence agreement covering:
     • Training and exchange of personnel.
     • Joint military exercises.
     • Research and supply of defence technology.
2. Trade and Economy:
   • Bilateral trade reached $10.47 billion in 2023-24.
   • Modi invited the Kuwait Investment Authority to explore opportunities in energy, pharmaceuticals, food parks, and infrastructure.
3. Additional Agreements:
   • Signed three MoUs in Sports, Culture, and Solar Energy.
4. Strategic Cooperation:
   • Strengthened collaboration in:
     • Pharmaceuticals
     • IT and FinTech
     • Infrastructure
     • Security

Vision 2035 Alignment

• Modi praised Kuwait’s developmental initiatives under ‘Vision 2035’ and emphasized mutual efforts to achieve shared objectives.

Implications of the Visit

1. People-to-People Connections:

   • Acknowledged the contributions of the 1 million-strong Indian community in Kuwait to its development.

2. Regional and Global Impact:

   • Collaboration with GCC:
     • Strengthened ties with the Gulf Cooperation Council (GCC) under Kuwait’s presidency.
     • Advocated for concluding the India-GCC Free Trade Agreement, aiming to boost trade, which reached $184.46 billion in 2022-23.
   • Shared Vision for West Asia:
     • Discussed strategies for peace, stability, and prosperity in West Asia.
     • Reaffirmed a joint stance against terrorism and a commitment to dismantling terror networks.

Conclusion

Prime Minister Modi’s visit has laid a solid foundation for a dynamic and robust India-Kuwait partnership. With strengthened defence ties, expanded trade, and strategic alignment, this renewed relationship promises significant benefits for both nations and the broader Gulf region.