INDIA-KUWAIT RELATIONS  

  I.                  POLITICAL

1.     India and Kuwait continue to enjoy traditional friendly relations. Geographical proximity, historical trade links, cultural affinities and presence of a large number of Indian expatriates have all continued to sustain and nurture the longstanding relationship over the years. India was a natural trading partner and a destination for higher learning, Until 1961, the Indian rupee was legal tender in Kuwait. However, after the discovery of oil and consequent affluence, Kuwait started looking westward to meet its diverse requirements.

 2.     India and Kuwait have no bilateral problems. Both share common perceptions on various regional and international issues and have been cooperating with each other in regional and international fora. Kuwait has been giving due consideration to India’s candidature in various elections to the UN body. Both India and Kuwait have been having high-level discussions and consultations with each other as will be seen from the list of exchanges of visits, enclosed. Kuwait has been in favour of solution of Indo-Pak problems through bilateral discussions within the framework of agreements signed between the two Governments.

  3.     Along with Saudi Arabia, Bahrain, Oman, Qatar and United Arab Emirates Kuwait belongs to the six-member Gulf Cooperation Council (GCC). Since the invasion in 1990 Kuwait is nervous of Iraq and relations with Iraq remain overriding foreign policy priority for Kuwait. Kuwait wants Iraq to fully adhere to UN resolutions guaranteeing its sovereignty and integrity, which are not negotiable. Kuwait has also made clear that it has nothing against the Iraqi citizens and would not like to participate in anything which may hurt them.

  4.     On Arab-Israel issue also, Kuwait has been appreciative of India’s principled stand in the matter. While its differences with the leadership of Palestinian National Authority persist, Kuwait has contributed US$150 million towards the funds established by the Emergency Arab Summit to further the causes of the Palestinians and the status of Jerusalem. However, Kuwait has been careful not to criticize US over its role in supporting Israel. On larger global issues, Kuwait continues to consistently harmonize its stand with that of the United States in particular, and, the west in general.

   5.     Terrorism: In the wake of September 11 terrorist attacks, Kuwait has expressed strong support for international coalition against terrorism. As part of its efforts to prevent funding of terrorist organisations Kuwait has taken a series of steps to regulate charities. The Ministry of Social Affairs and Labour has started directly supervising charity activities. The Central Bank had announced freeze of organisations accused of financing terrorist activities.

 II.               ECONOMICS & COMMERCE

  6.     Kuwait has always offered a wide open, highly competitive, and affluent market for capital and consumer goods and for project exports. In the post liberation period, the bilateral trade between India and Kuwait has risen.

India-Kuwait Bilateral Trade 1996-2005*

*Data exclude figures for crude oil and its by-products. All figures in US$ million. (Source: Kuwait Chambers of Commerce & Industry/ Min. of Planning/Ministry of Commerce, GOI).

  7.     The Composition of exports to Kuwait has undergone a qualitative change in the post liberation period. Our main items of imports and exports are as under:

  Imports from Kuwait

·        Oil & Petroleum products

·        Urea/Fertilizers

·        Sulphur

·        Naptha

·        Metal Scrap

  Exports to Kuwait

  ·        Rice

·        Meat and Meat Products

·        Tea, Coffee & Fresh fruits and vegetables

·        Handicrafts, gems & Jewellery, Textiles

·        Engineering goods and Transport equipment

·        Ready made garments and

·        Cement

 8.     Bilateral Investment

  The Kuwait investment in India is mainly in the financing sector, involving financing of our ongoing infrastructure projects like roads, highways and energy.

  The Kuwait Fund for Arab Economic development (KFAED) has extended concessional loans to India for a number of projects (8) in various sectors (Industry – 2 projects totaling Rs. 3.10 billion; Power – 5 projects totaling Rs. 6.71 billion and Agriculture – 1 project amounting to Rs. 0.80 billion) to the extent of KD 88.854 million (Rs. 10.61 billion) till 31^st December 1997. The updated figures of total loan amount up to 31.12.99 are US$ 271.89 Million, which works out to a little over Rs. 12.78 billion at the current rate of exchange. These projects are Kalinadi Hydro-Electric Power Stage (1); Kopili Hydro-Electric Power Project, Anpara Power (Coal transportation and handling); Thal Fertilizer’ South Bassein Gas; Kalinadi Hydro-Electric (Stage-2) and Kerala Fisheries Development.

  The total Kuwaiti FDI proposals approved during 1992 - 2002 (January.) have amounted to Rs.6007.63 million (i.e. 6 billion).

   Kuwait’s FDI approved during 1992-2002

  (Amount in Rs. Million)

(Source : SIA News Letter)                                         (Figures updated upto 31.7.2002)

  III.           CULTURAL

  9.     The cultural Exchange Agreement signed between India and Kuwait in 1970 was revived in December 1999 when an Executive Programme for Cultural Exchange was signed by both the sides. Action for its implementation has been initiated.

  10. On the media side also. There have been visits by journalists between the two countries to cover such events.

  11. Kuwait has a vibrant Indian community representing almost all parts of India. As on 1.2.2003, the size of the Indian community has reached approx. 3.70 lakhs and currently Indians constitute the largest expatriate community in Kuwait. A table giving statistics of the Indian nationals residing in Kuwait is as given below:

  Statistics of Indian nationals residing in the State of Kuwait as on 1.2.2003

(Source : Ministry of Interior)

  Indians have formed several cultural and charitable organisations on the basis of region, language and religion. At present 92 such associations are listed with the Mission. A large number of cultural events are organized by the Associations throughout the year either in the Indian Art Circle or at other venues. Some activities are also conducted in the halls available in Indian schools. They invite leading Indian artists and raise money for charitable activities back in India.

  12. There are 11 Indian schools in Kuwait out of them 9 schools are following 10+2 pattern of education and are all affiliated to Central Board of Secondary Education, New Delhi. Almost 90 per cent of the teachers are from India. They are all well established and cater to the needs of the large Indian community residing in Kuwait. The presence of over 5 lakh Indians staying and working in Kuwait in itself, plays a positive role in fostering India-Kuwait relations. Amongst them are old established families of Indian businessmen who have flourishing trade relations with Kuwait.

  The schedule visit of His Highness the Amir will play a major role in cementing, enhancing and boosting the Indo-Kuwait relations in various spheres of development concerning India and Kuwait.

                                                                                        (Kuwait Information Service)