• India
  • Dec 23

India, Kuwait elevate ties to ‘Strategic Partnership’

• India and Kuwait elevated their ties to a ‘Strategic Partnership’, inked a key pact on boosting defence cooperation and vowed to soon finalise an ambitious investment treaty as Prime Minister Narendra Modi held extensive talks with Amir Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah and other top leaders of the Gulf nation to broad-base the bilateral relations.

• PM Modi’s visit to Kuwait was the first by an Indian Prime Minister to the Gulf nation in 43 years.

• The last Indian PM to visit Kuwait was Indira Gandhi in 1981.

• PM Modi held separate talks with Kuwaiti Prime Minister Ahmad Abdullah Al-Ahmad Al-Sabah and Crown Prince Sabah Al-Khaled Al-Hamad Al-Mubarak Al-Sabah with a larger focus on imparting a new momentum to the overall ties.

Highlights of the discussions:

• Establishment of a Strategic Partnership between both countries will further broad-base and deepen our long-standing historical ties.

• The two sides also discussed ways to transform the existing ‘buyer-seller’ relationship in the energy sector to a comprehensive engagement with greater collaboration in upstream and downstream sectors and agreed to explore the participation of Kuwait in India’s strategic petroleum reserve programme.

• Both sides directed each other’s concerned authorities to fast-track and complete the ongoing negotiations on the bilateral investment treaty.

• To ramp up energy cooperation, the two sides expressed keenness to support companies of the two countries to increase cooperation in the fields of exploration and production of oil and gas, refining and engineering services and petrochemical industries.

• In their delegation-level talks, the two Prime Ministers discussed a roadmap to strengthen the strategic partnership in areas of trade, investment, energy, defence, security, health, education, technology, cultural and people-to-people ties.

• The Indian side showed keen interest in intensifying its cooperation with the Gulf Cooperation Council (GCC) through Kuwait’s presidency of the influential grouping.

• The GCC is an influential grouping comprising the United Arab Emirates, Bahrain, Saudi Arabia, Oman, Qatar and Kuwait. The total volume of India’s trade with GCC countries stood at $184.46 billion in the financial year 2022-23.

• The two Prime Ministers welcomed the recent signing of the Joint Commission for Cooperation (JCC). Under the JCC, new joint working groups in the areas of trade, investment, education, technology, agriculture, security and culture have been set up in addition to the existing JWGs on health, manpower and hydrocarbons.

MoUs/Agreements

Four documents were signed/exchanged during the visit, which will further deepen the multifaceted bilateral relationship as well as open avenues for newer areas of cooperation.

i) MoU between India and Kuwait on Cooperation in the field of Defence: This MoU will institutionalise bilateral cooperation in the area of defence. Key areas of cooperation include training, exchange of personnel and experts, joint exercises, cooperation in defence industry, supply of defence equipment, and collaboration in research and development, among others.

ii) Cultural Exchange Programme between India and Kuwait for the years 2025-2029: It will facilitate greater cultural exchanges in art, music, dance, literature and theatre, cooperation in preservation of cultural heritage, research and development in the area of culture and organizing of festivals.

iii) Executive Programme for Cooperation in the Field of Sports (2025-2028): It will strengthen bilateral cooperation in the field of sports between India and Kuwait by promoting exchange of visits of sports leaders for experience sharing, participation in programs and projects in the field of sports, exchange of expertise in sports medicine, sports management, sports media, sports science, among others.

iv) Kuwait’s membership of International Solar Alliance (ISA): The International Solar Alliance collectively covers the deployment of solar energy and addresses key common challenges to the scaling up of use of solar energy to help member countries develop low-carbon growth trajectories.

India-Kuwait Relations

• India and Kuwait have enjoyed traditionally friendly relations, with links dating back to pre-oil Kuwait when maritime trade with India was the backbone of its economy.

• India has been a natural trading partner of Kuwait and until 1961, Indian Rupee was a legal tender in Kuwait. 

• Till the discovery and development of oil, Kuwaitʼs economy revolved around its fine harbour and maritime activities which included ship building, pearl diving, fishing and voyages to India on wooden dhows carrying dates, Arabian horses and pearls that were traded for wood, cereals, clothes and spices.

• India was one of the first countries to establish diplomatic relations with Kuwait following its independence from British Protectorate in 1961.

• Prior to establishment of diplomatic relations, India was represented by a Trade Commissioner. 

• India-Kuwait relations have always had an important trade dimension. India has consistently been among the top trading partners of Kuwait. Total bilateral trade with Kuwait during FY 2023-24 was $10.47 billion. 

• Top five export items from India are aircraft parts, cereals, organic chemicals, vehicles and  electric machinery. 

• During FY 2023-24, Kuwait was the sixth largest crude supplier with about 3 per cent of Indiaʼs total energy needs.

• The Indian community with a strength of over one million is the largest expatriate community in Kuwait.

• There are 26 schools in Kuwait following CBSE curriculum with over 60,000 students, mainly Indians and some Arab and South Asian expats as well.

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