India and Kuwait are poised to enhance their diplomatic ties with Indian Prime Minister Narendra Modi’s visit to Kuwait. This visit marks the first by an Indian Prime Minister in 43 years. The last visit occurred in 1981 when Indira Gandhi travelled to the nation. The Indian Ministry of External Affairs has brought into light the historical and economic connections between the two countries. The visit aims to deepen multifaceted relations.
Historical Context of India-Kuwait Relations
India and Kuwait established formal diplomatic ties in 1961. However, their relationship dates back centuries. Pre-oil Kuwait engaged in maritime trade with India, exporting pearls and importing wood, cereals, and spices. The Indian rupee was legal tender in Kuwait until 1961. This long-standing trade relationship laid the foundation for future political ties.
Political Engagements
The political relationship began with a Trade Commissioner’s representation in Kuwait. High-level visits have included Indian leaders such as Dr Zakir Husain, Indira Gandhi, and Hamid Ansari. Kuwaiti leaders have also visited India, with the last visit occurring in 2013. Recent meetings between PM Modi and Kuwait’s Crown Prince have revitalised diplomatic discussions.
Trade and Economic Ties
Kuwait ranks among India’s top trading partners. The bilateral trade reached USD 10.47 billion in FY 2023-24. Kuwait is India’s sixth largest crude supplier, providing about 3% of its energy needs. Indian exports to Kuwait have surpassed USD 2 billion. The Kuwait Investment Authority has invested over USD 10 billion in India, denoting strong economic cooperation.
The Indian Diaspora in Kuwait
The Indian community in Kuwait is the largest expatriate group, numbering around 1 million. This community plays important role in encouraging ties between the two nations. Cultural initiatives, such as Hindi radio programmes and educational institutions, strengthen these connections. The two countries signed a Memorandum of About (MoU) for the recruitment of domestic workers in 2021, ensuring legal protections for these workers.
Energy Cooperation
Kuwait is a key supplier of crude oil and liquefied petroleum gas to India. The Joint Working Group on Hydrocarbons aims to maintain a stable energy partnership. Kuwait has expressed interest in investing in India’s energy sector, including Strategic Petroleum Reserves.
Geopolitical Considerations
PM Modi’s visit to Kuwait occurs amid regional turmoil in West Asia. India is expected to reaffirm its stance on Palestine, advocating for a two-state solution. This visit is as it is the first by an Indian Prime Minister since Iraq’s invasion of Kuwait in 1990, a period that strained relations.
Modi’s Engagements in West Asia
Since taking office in 2014, PM Modi has visited multiple West Asian nations, including the UAE, Saudi Arabia, and Israel. His frequent travels and the high-level recognition from these countries tell India’s growing influence in the region.
Questions for UPSC:
- Discuss the historical significance of India-Kuwait relations in the context of maritime trade.
- Critically examine the role of the Indian diaspora in strengthening India-Kuwait relations.
- Explain the importance of energy cooperation between India and Kuwait in the current geopolitical scenario.
- With suitable examples, discuss the implications of India’s foreign policy towards Palestine in the context of its relations with West Asian countries.
Answer Hints:
1. Discuss the historical significance of India-Kuwait relations in the context of maritime trade.
- Formal diplomatic ties were established in 1961, but maritime trade dates back centuries.
- Kuwait exported pearls and imported wood, cereals, and spices, indicating a robust economic relationship.
- Indian dhows were very important in pre-oil trade, showcasing historical maritime connections.
- The Indian rupee served as legal tender in Kuwait until 1961, denoting economic integration.
- The historical trade laid the foundation for political and cultural ties that continue .
2. Critically examine the role of the Indian diaspora in strengthening India-Kuwait relations.
- Indians constitute the largest expatriate community in Kuwait, with around 1 million members.
- The diaspora acts as a ‘living bridge,’ encouraging cultural and economic ties between the two nations.
- Cultural initiatives, such as Hindi radio programs and festivals, promote Indian heritage in Kuwait.
- CBSE-affiliated schools serve over 60,000 Indian students, enhancing educational ties.
- The MoU on domestic worker recruitment ensures legal protections and strengthens bilateral relations.
3. Explain the importance of energy cooperation between India and Kuwait in the current geopolitical scenario.
- Kuwait is a key supplier of crude oil and LPG, meeting about 3% of India’s energy needs.
- The Joint Working Group on Hydrocarbons ensures a stable energy partnership between the nations.
- Kuwait’s interest in investing in India’s energy sector enhances economic cooperation and security.
- Energy ties are crucial amid global energy transitions and geopolitical tensions in West Asia.
- Strategic Petroleum Reserves collaboration signifies a commitment to long-term energy security.
4. With suitable examples, discuss the implications of India’s foreign policy towards Palestine in the context of its relations with West Asian countries.
- India supports a two-state solution, promoting peace and stability in the region.
- This stance aligns with the interests of several West Asian nations, encouraging diplomatic ties.
- India’s recognition of Palestine is reflected in its historical support during the Non-Aligned Movement.
- Modi’s visit to Kuwait is as it reaffirms India’s commitment to Palestine amid regional turmoil.
- India’s balanced approach helps maintain relations with both Israel and Arab nations, enhancing its geopolitical influence.
