India and Kuwait are on the brink of a new chapter in their bilateral relationship as Prime Minister Narendra Modi embarks on a historic visit to Kuwait on December 21-22, 2024. This visit, which comes after a gap of 43 years since the last Indian Prime Minister visited Kuwait, offers a significant opportunity to deepen ties in key areas such as energy, trade, security, and community engagement. The invitation extended by Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah, the Amir of Kuwait, reflects the growing importance of the India-Kuwait relationship and sets the stage for broadening cooperation across multiple sectors.

Significance of Prime Minister Modi’s Visit

Prime Minister Modi’s visit to Kuwait in December 2024 is highly significant for several reasons. It marks the first visit by an Indian Prime Minister to Kuwait in over four decades, underscoring the renewed focus on strengthening bilateral ties. This visit is poised to bolster cooperation in several key areas:

Energy Security: A Pillar of the Partnership

Kuwait has long been a vital energy partner for India, with the Gulf nation supplying India with a substantial portion of its energy needs. Kuwait is the sixth-largest supplier of crude oil to India, contributing around 3% of India’s total oil consumption. In addition, Kuwait is a major exporter of liquefied petroleum gas (LPG) to India, which is crucial for meeting the country’s growing energy demand. Both countries have a well-established framework for energy cooperation, primarily through regular meetings of the Joint Working Group on Hydrocarbons.

India’s energy needs continue to grow, and strengthening this partnership will ensure a steady, reliable supply of energy, critical for India’s economic development. The visit is expected to focus on enhancing this energy relationship, particularly given the growing demand for clean and sustainable energy alternatives, where both nations can explore collaborative initiatives.

Expanding Trade: A Growing Economic Partnership

Economic ties between India and Kuwait have flourished in recent years, with Kuwait becoming one of India’s top trading partners. Bilateral trade reached USD 10.47 billion in 2023-24, with Indian exports to Kuwait surpassing USD 2 billion for the first time. This positive trend reflects the growing economic interdependence between the two countries. India exports a wide range of goods to Kuwait, including machinery, chemicals, and textiles, while Kuwait’s primary exports to India include petroleum products.

In addition to trade, Kuwait has also emerged as an important source of investment for India. The Kuwait Investment Authority, one of the world’s largest sovereign wealth funds, has invested over USD 10 billion in various sectors in India, including infrastructure, telecommunications, and technology. The visit is expected to see discussions aimed at expanding these investments, especially in sectors such as renewable energy, technology, and healthcare.

People-to-People Ties

A key aspect of the India-Kuwait relationship is the strong people-to-people ties. The Indian expatriate community in Kuwait is the largest foreign community, numbering over one million individuals. Indians in Kuwait contribute significantly to the country’s economy, particularly in sectors like construction, healthcare, and hospitality. The Indian community serves as a “living bridge” between the two countries, fostering cultural, social, and economic exchanges.

In recent years, both governments have worked to ensure the welfare of the Indian expatriates, particularly through labour agreements like the 2021 Memorandum of Understanding (MoU) on domestic workers’ rights. Prime Minister Modi is expected to address the concerns of the Indian community in Kuwait during his visit, strengthening the bilateral relationship through enhanced cooperation on labour and welfare issues.

Cultural exchanges also play an important role in maintaining the bilateral connection. Indian cinema, music, and cuisine are immensely popular in Kuwait, and both countries regularly organize cultural events. The Festival of India, held in Kuwait in March 2023, and the launch of a Hindi radio program in Kuwait in April 2024, are examples of how both nations celebrate their shared cultural heritage.

Security Cooperation: A Shared Commitment to Regional Stability

Security cooperation has been another cornerstone of the India-Kuwait partnership. Both nations have a shared interest in maintaining peace and stability in the region, particularly in the context of the volatile geopolitical landscape of the Gulf. India and Kuwait have collaborated on regional security issues, counterterrorism measures, and maritime security.

In addition, the manpower sector, particularly the recruitment and protection of Indian workers, is a crucial area of cooperation. As part of ongoing efforts to ensure the rights and safety of Indian expatriates in Kuwait, both nations have signed agreements to streamline recruitment processes and improve labour conditions.

A Vision for the Future

Prime Minister Modi’s visit to Kuwait represents a strategic step forward in the India-Kuwait partnership. Both nations are poised to explore new areas of collaboration in sectors such as technology, agriculture, healthcare, and science. With energy security, economic growth, and people-to-people ties at the forefront of discussions, this visit promises to strengthen an already robust relationship.

As India looks to diversify its energy sources and Kuwait seeks to expand its global economic footprint, the cooperation between these two nations is likely to deepen in the coming years. The strong historical foundations, combined with a shared vision for the future, ensure that India and Kuwait will continue to build on their ties in the years ahead.