A chance to strike gold during the Kuwait visit
(Source – The Hindu, International Edition – Page No. – 6)
Topic: GS2 – International Relations
Context
- A new journey to Kuwait. Prime Minister Narendra Modi visited Kuwait yesterday after a 43-year hiatus to strengthen ties between the countries on various grounds, from untapped trade to energy and strategic partnerships.
- Kuwait is an important strategic and economic power in the Gulf region.
- The visit aims to further strengthen bilateral cooperation in all sectors, including defense, energy, and infrastructure.
Strategic Importance of Kuwait
Geographical Importance:
- Location: Positioned at the northeastern end of the Persian Gulf, Kuwait shares borders with Iraq and Saudi Arabia, hosting significant American military bases that enhance its strategic relevance in regional security.
Political Stability:
- Monarchy and Democracy: As the only monarchy in the Gulf with a functioning political system that incorporates democratic elements, Kuwait plays a vital role in mediating regional disputes, contributing to political stability in the area.
Economic Strength:
- Oil Reserves: With the sixth-largest oil reserves globally, Kuwait is a cornerstone in world energy supply and a founding member of OPEC, which underscores its influence in global energy markets.
Sovereign Wealth Funds:
- Kuwait Investment Authority (KIA): Manages one of the largest sovereign wealth funds worldwide, valued at approximately $924 billion, allowing for robust investment capabilities and economic stability.
Bilateral Ties and Untapped Potential
- Historical and Cultural Bonds:
India was among the first countries to establish diplomatic relations with Kuwait in 1961, fostering a long-standing partnership. - Trade Relations:
- Bilateral Trade: Reached $10.47 billion in FY 2023-24, showcasing strong economic engagement.
- Energy Supply: Kuwait is crucial as the sixth-largest supplier of crude oil to India, fulfilling 3% of its energy needs.
- KIA Investments in India:
Indirect investments from KIA are estimated to exceed $10 billion, highlighting the economic interdependence. - Humanitarian Assistance:
During the COVID-19 pandemic, mutual support was evident, with Kuwait supplying medical aid and India providing vaccine doses.
People-to-People Ties
- Expatriate Community:
Over 1 million Indians live in Kuwait, forming the largest expatriate group and significantly contributing to the local economy. - Cultural Initiatives:
Events like the “Festival of India” in 2023 and the “Namaste Kuwait” radio program strengthen cultural and community ties. - Educational Links:
There are 26 Indian schools in Kuwait, serving over 60,000 students and promoting educational collaboration.
Areas for Enhanced Cooperation
- Strategic Agreements:
A comprehensive strategic partnership and defense cooperation agreement could significantly strengthen ties. - Collaborative Projects:
Opportunities exist for Kuwait to partner with India on initiatives such as the International Solar Alliance and disaster-resilient infrastructure projects, contributing to both nations’ development goals. - Infrastructure and Energy:
Kuwait’s Vision 2035 provides a framework for infrastructure development, while cooperative projects in oil and energy, including strategic oil reserves in India, could enhance energy security. - Space Programs:
Joint initiatives in space exploration and satellite technology could further technological collaboration.
Conclusion
This visit represents a pivotal moment to enhance mutual trust and cooperation, potentially ushering in a transformative phase in Kuwait-India relations. Expanding these ties promises benefits for both nations, enhancing regional stability and fostering economic growth.