A chance to strike gold during the Kuwait visit
(Source – The Hindu, International Edition – Page No. – 6)
| Topic: GS2 – International Relations |
| Context |
| ● Prime Minister Narendra Modi’s visit to Kuwait, the first in 43 years, aims to strengthen India-Kuwait ties by addressing untapped potential in trade, energy, and strategic partnerships.
● Kuwait holds significant strategic and economic importance in the Gulf region. ● The visit seeks to enhance bilateral cooperation across sectors, including defence, energy, and infrastructure. |
Strategic Importance of Kuwait
- Geographical Importance: Located at the north-east end of the Persian Gulf, Kuwait borders Iraq and Saudi Arabia and hosts key American military bases.
- Political Stability: It is the only monarchy in the region that has experimented successfully with democracy and often acts as a mediator in regional disputes.
- Economic Strength: Kuwait is home to the sixth-largest oil reserves globally and is a founding member of OPEC.
- Sovereign Wealth Funds: The Kuwait Investment Authority (KIA) manages one of the world’s largest sovereign wealth funds, valued at $924 billion (March 2024).
Bilateral Ties and Untapped Potential
- Historical and Cultural Bonds: India was among the first to establish diplomatic relations with Kuwait post-independence in 1961.
- Trade Relations:
- India is a top trading partner of Kuwait, with bilateral trade reaching $10.47 billion in FY 2023-24.
- Kuwait is the sixth-largest supplier of crude oil to India, meeting 3% of India’s energy needs.
- KIA Investments in India: Indirect investments from KIA in India are estimated at over $10 billion.
- Humanitarian Assistance:
- During the COVID-19 pandemic, both countries extended critical support to each other.
- Kuwait provided essential medical supplies to India, and India delivered two lakh vaccine doses to Kuwait.
People-to-People Ties
- Over 1 million Indians reside in Kuwait, forming the largest expatriate group and contributing significantly to the local economy.
- Initiatives like the ‘Festival of India’ in 2023 and the weekly Hindi radio program ‘Namaste Kuwait’ have strengthened cultural ties.
- Education links include 26 Indian schools in Kuwait with over 60,000 students following the Indian CBSE curriculum.
Areas for Enhanced Cooperation
- Strategic Agreements: Signing a comprehensive strategic partnership and a defence cooperation agreement can elevate ties.
- Collaborative Projects:
- Kuwait can partner with India on the International Solar Alliance and disaster-resilient infrastructure projects.
- Infrastructure development under Kuwait’s Vision 2035 and collaborations on higher education and healthcare facilities can deepen ties.
- Oil and Energy Cooperation: Kuwait could store strategic oil reserves in India, similar to the UAE.
- Space Programs: Joint space initiatives, including satellite launches for Kuwait, can enhance technological collaboration.
- This visit offers a critical opportunity to boost mutual trust, expand cooperation, and usher in a golden era in Kuwait-India relations.
| Practice Question: India’s engagement with the Gulf region has seen significant developments in recent years. Analyze the strategic and economic importance of Kuwait for India and suggest measures to deepen bilateral ties. (150 Words /10 marks) |
