PRIME Minister Narendra Modi’s visit to Kuwait on December 21-22 was a milestone in India’s diplomatic outreach to the Gulf region.
“We have elevated our partnership to a strategic one and I am optimistic that our friendship will flourish even more in the times to come,” said PM Modi after extensive talks with Kuwaiti Emir Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah.
In a rare gesture, Modi – the first Indian PM to visit Kuwait in 43 years – was bestowed with the country’s highest honour, the Order of Mubarak the Great by the Emir himself.
Kuwait is already one of India’s major trade partners, with bilateral trade valued at $10.47 billion in the financial year 2023-24. It is India’s sixth-largest crude supplier, meeting 3 per cent of the country’s energy needs, and the fourth-largest LPG supplier.
Several agreements
PM Modi’s visit ended with inking of several agreements in areas of information technology, pharmaceuticals, fintech, infrastructure and security.
Equally significant was PM Modi’s address to the mammoth Indian diaspora, which accounts for 21 per cent of Kuwait’s population. This “miniHindustan” (to paraphrase Modi) is the backbone of many Kuwaiti industries.
In 2023 alone, Indian expats in Kuwait sent back approximately 6.3 billion dollars, representing nearly 5 per cent of the total remittances to India.
PM Modi’s historic visit underscored India’ commitment to strengthening diplomatic relations, engaging with the Indian diaspora, and fostering strategic partnerships with the Gulf region.
Saudi Arabia and the UAE have pledged massive investments in India – a staggering $100 billion and $75 billion respectively. Trade with members of the Gulf Cooperation Council (GCC) comprises a whopping 15.8 per cent of India’s total trade, dwarfing the 11.6 per cent with the European Union.
Astute timing
The PM’s Kuwait visit was built on a foundation of shared interests, a desire for diversification on the Gulf’s part, and India’s booming economy proving an irresistible lure.
Kuwait, despite its small size, is a heavyweight, boasting some of the world’s largest oil reserves and a substantial sovereign wealth fund. The timing of the visit was particularly astute, given the shifting geopolitical landscape of West Asia. Kuwait’s Foreign Minister’s recent commendation of PM Modi as “one of the wisest leaders in the world” indicates a genuine desire for closer cooperation and recognition of India’s growing global stature.
Indian exports to Kuwait are hitting new highs, and Kuwait’s investments in India exceed $10 billion. Kuwait’s sovereign wealth fund, one of the world’s largest, is already investing in India. The potential for growth is immense. This is not only advantageous for India but also promises to reshape the geopolitical contours of the Middle East, with India poised to play an increasingly pivotal role.
