A chance for gold during the visit to Kuwait

Indian Foreign Minister S Jaishankar meets Kuwaiti Foreign Minister Abdullah Ali Al-Yahya and other delegates in New Delhi in early December | Photo credit: PTI

Prime Minister Narendra Modi will visit Kuwait on December 21 and 22. The visit will be the first by an Indian Prime Minister in 43 years, the last being that of Prime Minister Indira Gandhi in 1981. Mr Modi was due to visit Kuwait in January 2022, but the visit was postponed due to concerns over COVID. -19.

This visit is of great importance not only for bilateral relations but also for the region, which is going through a very difficult phase of conflict and transition. Mr. Modi has visited every other Gulf Cooperation Council (GCC) country over the past decade, some more than once, and not visiting Kuwait has been seen as a shortcoming in India’s engagement in West Asia. This visit aims not only to bridge this gap, but also to give impetus to the rather stagnant ties between the two countries which otherwise have a lot of potential for strong engagement.

A country of strategic importance

Why is Kuwait important? Although it is one of the smallest countries in the region, it is of considerable strategic importance. Located at the northeastern tip of the Persian Gulf, it shares borders with Iraq and Saudi Arabia and is home to major US military bases. It is the only monarchy in the region that has successfully experimented with democracy. On regional issues, she generally maintained a neutral position and was often the interlocutor in resolving disputes.

Its wealth is mainly due to its vast oil reserves, which rank sixth in the world. It is also one of the founding members of the Organization of the Petroleum Exporting Countries (OPEC).

It also has one of the largest sovereign wealth funds. These funds, managed by the Kuwait Investment Authority (KIA), have seen impressive growth and are currently estimated at $924 billion (as of March 2024), the fourth largest in the world after Norway, China and the United Arab Emirates (UAE). ). ).

Untapped potential, existing links

India and Kuwait have always enjoyed friendly ties, built on a strong foundation of historical and cultural ties. India was one of the first countries to establish diplomatic relations with Kuwait after its independence from the British protectorate in 1961. In fact, the Indian rupee was legal tender in Kuwait until 1961.

Commercial and interpersonal relations traditionally constitute the main pillars of bilateral relations. India has historically been one of Kuwait’s major trading partners, with total bilateral trade with Kuwait in the financial year 2023-2024 amounting to $10.47 billion. In FY 2023-24, Kuwait was the sixth largest supplier of crude oil, meeting approximately 3.0% of India’s total energy needs. KIA has invested indirectly in India, with investments estimated at over $10 billion.

During the COVID-19 pandemic too, India and Kuwait have demonstrated a strong sense of brotherhood. India has supplied two lakh vaccine doses. During the second wave of COVID-19 in May 2021, Kuwait supplied 282 oxygen cylinders, 60 oxygen concentrators, ventilators and many other medical supplies to India.

Interpersonal connections are the other strong anchor. Out of a population of nearly 4.9 million, around 1 million Indians not only make up the largest group of expats in Kuwait, but are also among the most trusted. As a special gesture, an ‘India Festival’ was organized in Kuwait in March 2023. A weekly Hindi radio show, ‘Namaste Kuwait’, was launched by Kuwait National Radio since April 2024. And 26 schools in Kuwait with over 60,000 students, follow the curriculum of the Central Board of Secondary Education of India.

When tragedy struck on June 12, in the form of a fire in a residential building in Kuwait, killing more than 40 Indians, Kuwait provided assistance and quickly repatriated their remains.

Areas to enhance links

Despite mutual trust and goodwill, India’s ties with Kuwait – as with many others in the Gulf region – could not be taken to the next level. Mr. Modi’s visit therefore offers the ideal opportunity to shake things up. Signing a comprehensive strategic partnership agreement with Kuwait could be an ideal start. An agreement on defense cooperation could also be signed. India has invited Kuwait to join the International Solar Alliance (ISA) and the Disaster Resilient Infrastructure Coalition, which Kuwait is likely to accept. An agreement between KIA and the National Investment and Infrastructure Fund (NIIF) in India could be mutually beneficial and provide an impetus to growth in India. Like the United Arab Emirates, Kuwait could become an important partner for the storage of strategic oil reserves in India.

From India’s side, helping Kuwait build its infrastructure as part of Kuwait’s “Vision 2035” could be a good move. The establishment of higher education institutes, such as the Indian Institute of Technology and the Indian Institute of Management, as well as modern hospitals in Kuwait could strengthen people-to-people ties. Kuwait’s request for additional seats for its airlines from India (on top of the allocated 12,000 seats per week) could be considered a special exemption, although Kuwait does not meet the required quota. Cooperation in space programs, including launching satellites for Kuwait, would also make headlines.

The prospects of Kuwait-India relations are immense and the wish list is endless. Hopefully, this visit will provide the ideal platform to launch a golden age in this very important bilateral relationship.

Rajeev Agarwal, retired Colonel, is a former Director of the Ministry of External Affairs, a former Director of Military Intelligence (International Relations) and a former Research Fellow at the Manohar Parrikar Institute of Defense Studies and Analyses, New Delhi (IDSA), New Delhi. .