25-December-2024-Editorial

INDIA-KUWAIT STRATEGIC PARTNERSHIP

India and Kuwait have strengthened their relationship by elevating it to a strategic partnership during Prime Minister Narendra Modi’s landmark visit to the Gulf nation.

This marks the second visit by an Indian Prime Minister to Kuwait since Indira Gandhi’s visit in 1981, highlighting the significance of the bilateral ties.

Highlights of PM Modi’s Visit to Kuwait

Order of Mubarak Al Kabeer:

• PM Modi received Kuwait’s highest civilian honor, the ‘Order of Mubarak Al Kabeer,’ recognizing his efforts to enhance India-Kuwait relations.

Strategic Partnership:

• Both nations upgraded their relationship to a ‘Strategic Partnership,’ expanding cooperation across trade, defense, energy, politics, and culture.

Defence Cooperation:

• An MoU on defense cooperation was signed, emphasizing joint military drills, training, and coastal defense collaborations.

Cultural and Sports Agreements:

• Agreements included a Cultural Exchange Programme (2025-2029) and an Executive Programme on Sports Cooperation (2025-2028).

Joint Commission on Cooperation (JCC):

• A JCC was established, chaired by the Foreign Ministers of both nations, to monitor and enhance bilateral ties.
• New Joint Working Groups (JWGs) were formed in key areas like trade, education, agriculture, investments, and counter-terrorism.

Technology and Innovation:

• Both sides emphasized collaboration in emerging sectors such as artificial intelligence, semiconductors, e-Governance, and technology sharing.

Energy Partnership:

• They agreed to transition from a buyer-seller model to a comprehensive partnership in energy, including oil, gas, refining, and renewables.

Multilateral Cooperation:

• Kuwait’s membership in the International Solar Alliance (ISA) was welcomed.
• India congratulated Kuwait on its Gulf Cooperation Council (GCC) Presidency and stressed concluding the India-GCC Free Trade Agreement.
• Both leaders advocated for a reformed United Nations to address global challenges.

About the Order of Mubarak Al Kabeer

• Significance: Awarded to foreign Heads of State and members of royal families.
• History: Established in 1974, the award honors Mubarak Al Sabah (Mubarak Al Kabeer), Kuwait’s ruler from 1896 to 1915, known for securing Kuwait’s autonomy from the Ottoman Empire.
• Notable Recipients: Past recipients include Queen Elizabeth II, US Presidents George H.W. Bush and Bill Clinton, King Salman of Saudi Arabia, and Nicolas Sarkozy of France.

India-Kuwait Relations: An Overview

Historical Ties:

• India and Kuwait share deep-rooted historical ties dating back to maritime trade before Kuwait’s oil boom.
• The Indian Rupee was Kuwait’s official currency until 1961.
• Historically, Kuwait traded pearls, dates, and Arabian horses with India. Post-oil discovery, Kuwait’s economy shifted focus, with oil now constituting 94% of state revenue.

Economic Relations:

• Trade: Kuwait ranks among India’s top trading partners, with bilateral trade reaching USD 10.47 billion in 2023-24.
• Oil Supply: Kuwait is India’s 6th largest crude oil supplier, meeting 3% of India’s energy needs.
• Indian Exports: Exports to Kuwait exceeded USD 2 billion for the first time.
• Investments: Kuwait Investment Authority’s investments in India surpass USD 10 billion.

Indian Diaspora:

• Approximately 1 million Indians live in Kuwait, forming the largest expatriate group.
• They play vital roles in healthcare, engineering, retail, and other key sectors of Kuwait’s economy.

Importance of Kuwait in India’s West Asia Policy

Economic Contributions: Remittances from Indian expatriates in Kuwait contribute significantly to India’s economy.

Collaborative Opportunities:

• Kuwait’s Vision 2035, focusing on diversifying its economy beyond oil, aligns with India’s expertise in renewable energy, infrastructure, and technology.
• Energy security from Kuwait is crucial for India’s industrial and domestic growth.

Geopolitical Role: Kuwait’s strategic location in the Middle East and its influence in the GCC make it a key partner for India’s engagement in West Asia.

Labour and Skill Development: Kuwait’s demand for skilled workers under Vision 2035 provides opportunities for Indian professionals in healthcare, technology, and infrastructure.

About the Gulf Cooperation Council (GCC)

The GCC is a political and economic union of six Arab nations: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE.

Established in 1981 to address regional tensions like the Iranian Revolution and the Iraq-Iran War.

Structure:

• The Supreme Council, consisting of member states’ Heads of State, is the top decision-making body.
• The Presidency rotates annually among member nations alphabetically.

India-GCC Relations:

• Trade: The GCC is a major trading partner, with bilateral trade reaching USD 161.59 billion in 2023-24.
• Exports and Imports: India’s exports to the GCC were USD 56.3 billion, and imports were USD 105.3 billion.
• Expatriates: Around 8.9 million Indians live in GCC countries, contributing significantly to remittances.
• The UAE is India’s 3rd largest trading partner and 2nd largest export destination.

India’s growing engagement with Kuwait and the GCC reflects its strategic priorities in energy security, trade, and diaspora welfare, while fostering closer ties with West Asia.