India and Kuwait strengthening ties in a changing global landscape
By Abdulaziz Al-Anjeri (Founder & CEO) &
Dr. Aftab Kamal Pasha (Head- India Affairs Unit)
Published by Reconnaissance Research
The recent visit of Indian Prime Minister Narendra Modi to Kuwait marks a significant moment in the evolving relationship between the two nations.
As Kuwait and India navigate an increasingly interconnected global landscape, the visit underscores the growing importance of their bilateral partnership and its vast potential for expansion in trade, investment, and strategic collaboration.
Historical and Cultural Foundations
India and Kuwait share a rich legacy of trade and cultural exchange that spans thousands of years. These historical interactions have laid a solid foundation for a modern partnership that goes beyond transactional exchanges, evolving into a deeper, multifaceted relationship.
Today, the Indian expatriate community, numbering over one million in Kuwait, serves as a living bridge between the two nations. Their contributions across sectors such as healthcare, education, and infrastructure play a vital role in Kuwait’s economy and social fabric.
This enduring connection aligns with India’s view of the Gulf region as its “extended neighborhood.” Despite being separated by the Arabian Sea, India and Kuwait share a deeply interdependent relationship. As both nations continue to evolve, their partnership is poised for transformation, expanding in both scope and depth.
Expanding Economic Synergies
Economic cooperation remains the cornerstone of India-Kuwait relations. Kuwait has long been a reliable energy partner for India, supplying a significant portion of its crude oil needs, while India exports key products such as food, machinery, and textiles to Kuwait.
Bilateral trade reached $9.5 billion in 2022-23, reflecting consistent growth. However, this figure represents only the beginning, with both nations poised to unlock a much larger potential partnership in the years ahead.
India’s broader economic engagement with the Gulf Cooperation Council (GCC) countries reflects this growing momentum. The GCC bloc, which includes Kuwait; accounts for 16% of India’s total global trade, reaching $184 billion in 2022-23.
While the UAE and Saudi Arabia are the leading partners, Kuwait is emerging as a key player in this relationship. As Kuwait progresses with its Vision 2035 economic diversification strategy, India’s expertise in technology, renewable energy, and infrastructure development presents significant opportunities for collaboration.
Balancing Energy and Food Security
The partnership between India and Kuwait is built on a symbiotic relationship, where Kuwait meets India’s rising energy demands, and in turn, India has the capacity to address Kuwait’s growing food security needs.
The Gulf region has a significant demand for agricultural and food products, yet India currently accounts for just 4.8% of its food imports. By leveraging its vast agrarian economy and strong export capabilities, India has the potential to position itself as a key supplier to Kuwait and other GCC nations. This would help ensure long-term food security for the region, creating a sustainable and mutually beneficial partnership.
A Potential Game-Changer: Free Trade Agreements
The prospect of a comprehensive Free Trade Agreement (FTA) between India and the GCC could revolutionize both bilateral and regional trade dynamics.
The success of the India-UAE Comprehensive Economic Partnership Agreement (CEPA), which is projected to boost bilateral trade to $100 billion within five years, offers a model for similar agreements with other GCC nations, including Kuwait.
For Kuwait, participating in an FTA would provide access to India’s vast consumer market while attracting increased investment in critical sectors such as renewable energy, logistics, and technology.
Strategic Significance in a Multipolar World
India’s strategic importance to Kuwait extends beyond economic cooperation. As a G20 member and an emerging global power, India plays a crucial role in shaping the geopolitical landscape. Its commitment to multilateralism and pragmatic approach to international relations align with Kuwait’s foreign policy principles.
Moreover, closer collaboration between the two nations on key issues such as climate change, renewable energy, and global supply chain resilience can enhance their collective influence, enabling them to address regional and global challenges more effectively.
Strengthening People-to-People Connections
The Indian community in Kuwait is a cornerstone of the bilateral relationship. Facilitating labor mobility, ensuring the rights of expatriate workers, and promoting cultural and educational exchanges are essential for deepening these ties. Cultural diplomacy, including collaborative initiatives in arts, education, and heritage preservation, can further enhance mutual understanding and respect between the two nations.
A Vision for the Future
Prime Minister Modi’s visit provides a unique opportunity to reimagine the India-Kuwait partnership. By leveraging shared strengths and addressing common challenges, both nations can develop a roadmap for long-term collaboration.
Key initiatives such as expanding agricultural trade, deepening energy cooperation, and fostering joint ventures in technology and innovation can serve as the foundational pillars of this partnership, paving the way for a sustainable and mutually beneficial future.
The broader India-GCC relationship offers further opportunities for Kuwait. The GCC’s substantial investments in India, combined with its role as a vital energy supplier, highlight the interdependence between the two regions.
A coordinated strategy to maximize these opportunities, particularly through trade agreements and enhanced investment flows, will yield significant mutual benefits.
Conclusion
India and Kuwait are bound by a rich history and a shared vision for the future. The relationship has evolved from its historical roots into a modern partnership, characterized by economic synergies, strategic alignment, and cultural connections. As the global landscape becomes increasingly complex, this partnership stands as a model of resilience and adaptability.
Prime Minister Modi’s visit is not only a celebration of the past but also a critical reminder for Kuwait to take proactive steps in deepening its engagement with India.
The Kuwaiti government must focus on expanding avenues of collaboration, particularly in areas such as technology, renewable energy, food security, and infrastructure development.
Strengthening institutional frameworks, fostering people-to-people connections, and investing in joint ventures will be key to ensuring that this partnership continues to thrive and evolve, creating long-term benefits for both nations.
At Reconnaissance Research, we recognized the significance of the India-Kuwait relationship early on, establishing our India Affairs Unit in 2024 to focus on fostering stronger ties between the two nations. Our commitment lies in identifying opportunities for cooperation and facilitating dialogue that serves the mutual interests of both India and Kuwait.
Prime Minister Modi’s visit underscores the importance of this work, and we remain steadfast in supporting efforts to build a stronger, more dynamic partnership between Kuwait and India.
Prime Minister Narendra Modi’s historic visit to Kuwait marks a turning point in the evolving relationship between India and Kuwait. To highlight this partnership and the opportunities it brings to both nations, Reconnaissance Research, Kuwait’s leading independent think tank, has published an analysis.
The report, authored by Abdulaziz Al-Anjeri, Founder and CEO of the institution, and Dr. Aftab Kamal Pasha, Head of the India Affairs Unit, delves into the significance of the visit and the potential for deeper bilateral ties.
The paper explores the historical, economic, and strategic dimensions of the India-Kuwait relationship. It also highlights the pivotal role of Reconnaissance Research, which established its India Affairs Unit in 2024, to focus on strengthening ties between the two nations. The unit focuses on providing actionable insights to decision-makers, further deepening the collaboration and understanding between India and Kuwait.
This paper provides a roadmap on how the Kuwaiti government can build on the momentum generated by Prime Minister Modi’s visit to achieve deeper and more meaningful collaboration with India.
Read on for an exclusive analysis by Reconnaissance Research, published only in the Times of Kuwait.
