PM Narendra Modi Visit to Kuwait

Significance of Kuwait for India

• Strategic Importance: Located at the northeast end of the Persian Gulf, Kuwait shares borders with Iraq and Saudi Arabia and hosts key U.S. military bases.
  • It is the only monarchy in the Gulf region that has successfully experimented with democracy.
  • It plays a neutral and mediatory role in resolving regional disputes.
• Energy Partner: Kuwait has the world’s sixth-largest oil reserves and is a founding member of OPEC.
  • It was the sixth-largest crude oil supplier to India in FY 2023-24, catering to about 3% of India’s energy needs.
• Sovereign Wealth Fund: Kuwait’s Sovereign Wealth Fund (KIA) is the fourth-largest globally, valued at $924 billion (March 2024).
  • KIA has invested over $10 billion indirectly in India, showcasing its economic partnership potential.
• Cultural and People-to-People Ties: Around 1 million Indians form the largest expatriate group in Kuwait, strengthening ties through cultural exchanges and remittances.
  • India’s educational influence is significant, with 26 CBSE-affiliated schools in Kuwait educating over 60,000 students.
• Historical Relations: India was one of the first countries to establish diplomatic relations with Kuwait in 1961, post its independence.
  • The Indian Rupee was legal tender in Kuwait until 1961.

Past Relations Between India and Kuwait

• Trade Relations: Bilateral trade stood at $10.47 billion in FY 2023-24, with India consistently ranking as one of Kuwait’s top trading partners.
  • India imported crude oil and exported food, textiles, and other goods to Kuwait.
• COVID-19 Collaboration: India supplied 2 lakh vaccine doses to Kuwait during the pandemic.
  • Kuwait provided vital medical supplies to India, including oxygen cylinders and concentrators, during the second COVID wave in May 2021.
• Cultural Initiatives: Events like the Festival of India (March 2023) and the weekly ‘Namaste Kuwait’ Hindi radio program have deepened cultural bonds.
• People-Centric Cooperation: Kuwait swiftly helped repatriate mortal remains of over 40 Indians killed in a residential fire in June 2024.
  • Indian workers are highly trusted and contribute significantly to Kuwait’s economy.

Expected Outcomes of PM Modi’s Visit to Kuwait

• Strengthening Bilateral Agreements: Signing of a Comprehensive Strategic Partnership Agreement to bolster ties.
  • Likely agreement on defense cooperation.
• Economic Collaboration: Discussions on cooperation between KIA and India’s National Investment and Infrastructure Fund (NIIF).
  • Exploration of Kuwait’s participation in India’s strategic oil reserves.
• Infrastructure and Education: India could assist in Kuwait’s ‘Vision 2035’ infrastructure initiatives, potentially building institutes like IITs, IIMs, and modern hospitals.
• Sustainable and Technological Cooperation: Kuwait’s potential joining of the International Solar Alliance (ISA) and the Coalition for Disaster Resilient Infrastructure (CDRI).
  • Collaboration in space technology, including launching satellites for Kuwait.
• Aviation and Connectivity: Addressing Kuwait’s request for additional airline seat allotments to improve connectivity.
• Geopolitical Engagement: Addressing the stagnation in India-Kuwait relations and aligning policies to strengthen India’s overall West Asia strategy.

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