India-Kuwait Elevate Ties to Strategic Partnership (GS Paper 2, IR)
Why in News?
- Prime Minister Narendra Modi's recent visit to Kuwait marked a historic milestone in the bilateral relations between the two countries, as they elevated their partnership to a "strategic" level.
- This move highlights a deepened collaboration in various areas, such as trade, defence, and more, and underscores India’s growing role in the Gulf region, amid evolving geopolitical dynamics.
A Brief About India-Kuwait Ties
Background:
- India and Kuwait share a long history of friendly relations.
- India was among the first countries to establish diplomatic ties with Kuwait after its independence from the British Protectorate in 1961.
- The two nations have maintained strong trade connections, and until 1961, the Indian Rupee was used as legal currency in Kuwait.
Current Dynamics:
- Energy Cooperation: Kuwait is India's sixth-largest crude oil supplier, meeting approximately 3% of India’s energy needs.
- Trade Growth: India's exports to Kuwait surpassed $2 billion for the first time, while the Kuwait Investment Authority has invested over $10 billion in India.
- Indian Expatriates: The Indian community is Kuwait’s largest expatriate group, playing a crucial role in the country's economic and social development.
Historic Significance of the PM’s Recent Visit to Kuwait
- First Visit in 43 Years: Modi's two-day visit was the first by an Indian Prime Minister since Indira Gandhi’s visit in 1981.
- Recognition of Leadership: Kuwait conferred upon Modi its highest civilian award, ‘The Order of Mubarak Al-Kabeer’, in recognition of his efforts to strengthen India-Kuwait ties.
- Engagement with Kuwaiti Leadership: During his visit, Modi held meetings with:
- Amir Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah (first bilateral meeting).
- Crown Prince Sheikh Sabah Al-Khaled Al-Hamad Al-Mubarak Al-Sabah.
- Prime Minister Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah.
Strengthening Bilateral Relations
Defence Cooperation:
A comprehensive defence agreement was signed, covering areas such as:
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- Training and exchange of personnel.
- Joint military exercises.
- Supply and research in defence technology.
Trade and Economic Ties:
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- Kuwait is one of India’s top trading partners, with bilateral trade valued at $10.47 billion (2023-24).
- Modi invited the Kuwaiti Investment Authority to explore investment opportunities in sectors like energy, pharmaceuticals, food parks, and infrastructure in India.
Additional Agreements:
- Three MoUs were signed in areas of sports, culture, and solar energy.
Expanding Strategic Cooperation:
The elevation to a strategic partnership aims to deepen collaboration in sectors like:
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- Pharmaceuticals.
- IT and FinTech.
- Infrastructure.
- Security.
Vision 2035 Alignment:
- Modi congratulated Kuwait on its Vision 2035 initiatives, and both countries expressed a shared commitment to achieving their mutual goals through increased cooperation.
Implications of the PM Modi’s Recent Visit on India-Kuwait Ties
People-to-People Connections:
- The visit acknowledged the 1 million-strong Indian community in Kuwait, recognizing their valuable contributions to the country’s economic and social development.
Regional and Global Implications:
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- Collaboration with GCC: India expressed its desire to enhance cooperation with the Gulf Cooperation Council (GCC), leveraging Kuwait’s presidency of the organization.
- The focus is on concluding the India-GCC Free Trade Agreement to boost trade, which reached $184.46 billion (2022-23).
- Shared Vision for West Asia: Both nations discussed ensuring peace, stability, and prosperity in the volatile West Asia region.
- They jointly condemned terrorism and committed to dismantling terror networks.
Conclusion
- Prime Minister Modi's visit has set the stage for a more dynamic and robust India-Kuwait partnership.
- With enhanced defence ties, expanded trade relations, and a shared strategic vision, the renewed relationship promises significant benefits not only for the two countries but also for the broader Gulf region.
- As Modi remarked, “I dedicate this honour to the people of India and to the strong friendship between India and Kuwait,” reflecting the deep and enduring ties between the nations.
