The Hindu Editorial Analysis- 21st December 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

A Chance to Strike Gold During the Kuwait Visit

Why in News?

The Prime Minister, Narendra Modi, is set to visit Kuwait on December 21-22. The visit will be the first by an Indian Prime Minister in 43 years, the last being the visit by Prime Minister Indira Gandhi in 1981. Mr. Modi was scheduled to visit Kuwait in January 2022, but the visit was postponed due to concerns about COVID-19.

Significance of the Visit

• The visit is very important for both the strong ties between India and Kuwait, as well as for the region, which is facing serious challenges and changes.
• Over the last 10 years, Mr. Modi has traveled to all other countries in the Gulf Cooperation Council (GCC), visiting some of them multiple times.
• His lack of a visit to Kuwait was seen as a missed opportunity in India’s relationship with West Asia.
• This trip aims to address this missed opportunity and improve the currently slow-moving relationship between India and Kuwait.
• Both countries have significant potential for stronger connections and cooperation.

About India-Kuwait Relations

• India and Kuwait have a relationship that is deeply rooted in history and strengthened by strong economic ties.
• The connections between the two countries go back many centuries, primarily through trade and cultural exchanges.
• Formal diplomatic relations were established in 1962, marking the beginning of a more structured partnership.
• Since then, the relationship has grown significantly, especially in the economic sector.
• Kuwait plays a vital role as an energy supplier to India, which is crucial for India's energy needs.
• Both countries are actively engaged in trade and investments, enhancing their economic cooperation.
• A major factor in the strong ties is the presence of the largest Indian expatriate community in Kuwait.
• Recent visits by high-level officials and various institutional agreements have further solidified these relations.

Historical Background of India-Kuwait Relations

• India and Kuwait have a relationship that goes back to ancient times when they traded in spices, pearls, and textiles. 
• Indian traders frequently visited the shores of Kuwait, establishing strong trade and cultural connections. 
• After India's independence, the two countries officially established their diplomatic relationship in 1962. 
• Their relationship grew due to shared economic interests in the energy sector. 
• The bond between India and Kuwait was further strengthened because of important geopolitical concerns for both countries. 

Bilateral Ties Between India and Kuwait

• Kuwait is a key economic partner for India, with total trade reaching USD 10.47 billion in the fiscal year 2023-24.
• The countries share a strong connection in the energy sector; Kuwait is India's 6th largest source of crude oil and 4th largest for LPG.
• Exports from India to Kuwait have hit a record high of USD 2 billion.
• The Kuwait Investments Authority has invested more than USD 10 billion in India.

Political Relations

• Political ties are strengthened through high-level visits and strategic discussions.
• Notable visitors include Vice President Dr. Zakir Husain, Prime Minister Indira Gandhi, and Vice President Shri Hamid Ansari.
• Recent interactions featured a meeting between Prime Minister Modi and Kuwait's Crown Prince, along with foreign minister exchanges to enhance cooperation.

Cultural Relations

• Cultural exchanges form a strong basis for the India-Kuwait relationship.
• Both nations celebrate shared heritage through cultural activities, highlighting Indian festivals, films, and cuisine, which are well-received in Kuwait.

Defense and Security Cooperation

• Defense collaborations include joint military exercises and training programs.
• These efforts aim to enhance maritime security, counter-terrorism measures, and intelligence sharing, promoting regional stability.

Educational and Technological Cooperation

• India and Kuwait engage in educational exchanges and technological collaborations.
• Joint ventures focus on research and development, higher education, and skill development training programs.

Healthcare Cooperation

• Kuwait has benefited from India's thriving healthcare sector through medical tourism.
• Indian healthcare professionals and facilities are highly sought after.
• During the COVID-19 pandemic, India supplied crucial medicines and medical equipment to Kuwait.

Investment and Trade Enhancements

• Various Joint Working Groups (JWGs) target specific sectors such as trade, investment, education, technology, agriculture, and culture.
• These groups work to identify and carry out practical actions to boost cooperation.

Human Resources and Employment

• Kuwait employs a significant number of Indian expatriates, who form the largest expatriate community in the nation.
• This workforce plays a vital role in Kuwait's economic development while benefiting from job opportunities in the Kuwaiti economy.

Indian Diaspora

• The Indian community is a crucial part of Kuwait’s social and economic landscape.
• Over a million Indians live in Kuwait, making them the largest expatriate group.
• They work in various industries, including healthcare, education, construction, and domestic services.
• The Indian diaspora actively engages in cultural and economic activities, strengthening bilateral ties.

Strategic Implications of PM Modi’s Current Visit to Kuwait

• Prime Minister Narendra Modi will travel to Kuwait on December 21-22, 2024. This marks the first visit by an Indian Prime Minister in 43 years.
• Strengthening Diplomatic Ties: Meeting directly with the leaders of Kuwait will help strengthen political relationships and open up paths for future strategic partnerships.
• Economic Boom: Discussions are expected to focus on boosting trade, especially in areas beyond oil, including technology, healthcare, and education, to create a more balanced economy.
• Assurance of Energy Security: The visit will likely confirm Kuwait as a reliable energy partner, ensuring a steady supply of oil, which is vital for keeping the Indian economy stable.
• Diaspora Engagement: Interacting with the Indian community in Kuwait provides a chance to connect with expatriates who are important for strengthening bilateral relations and addressing their issues, thus enhancing people-to-people connections.
• Institutional Agreements: This visit may result in new agreements and the activation of joint commissions and working groups, ensuring ongoing cooperation in various sectors.

Importance of Kuwait to India

• Kuwait plays a vital role as an energy supplier and is a significant investor in India. Its influence on India's foreign policy is very important. 
• Energy Security: Kuwait is one of the leading oil suppliers to India. As a country that needs a lot of energy, India depends greatly on imports. Therefore, maintaining a strong relationship with Kuwait is crucial for ensuring a reliable supply of oil and LPG, which are necessary for the growth of the Indian economy. 
• Economic Cooperation: The economic ties between the two countries go beyond just energy. They share strong trade connections and investments. Notably, Kuwait's sovereign wealth funds contribute to infrastructure projects in India, as well as joint ventures in petrochemicals, fertilizers, and food processing. 
• Geopolitical Stability: Kuwait's strategic position in the Gulf region and its ability to help resolve regional conflicts are essential for maintaining peace. This aligns well with India's broader interests in the Middle East. 

Issues Concerning India-Kuwait Relations

• Labor Rights: The contributions of the diaspora have generally been positive, but there are sometimes tensions regarding labor rights, wages, and working conditions for Indian expatriates. India is dedicated to enhancing the living and working conditions of its workers abroad. 
• Trade Imbalances: Although the trade between India and Kuwait is strong, the trade balance is often uneven due to the large amount of oil imports. To help fix this imbalance, it is important to diversify trade and increase Indian exports. 
• Political Dynamics: The changing political situation in the Middle East can affect the relationship between India and Kuwait. Both countries need to manage their foreign policies carefully to avoid conflicts and maintain ongoing cooperation. 
• Bureaucratic Challenges: Administrative and bureaucratic obstacles can sometimes slow down agreements between the two nations. This can hinder economic and technological cooperation. Improving processes and strengthening institutional frameworks can help resolve these issues. 

Conclusion

• The relationship between India and Kuwait is based on a long history.
• There is strong economic cooperation between the two nations.
• Both countries engage in cultural exchanges that enrich their ties.
• They share a strategic partnership that benefits both sides.
• Prime Minister Narendra Modi is set to visit Kuwait.
• Both nations place great importance on their bilateral relationship.
• The visit will provide an opportunity to address existing challenges.
• It will also explore new areas for cooperation and mutual commitments.
• As both countries prepare for this important meeting, it aims to strengthen their future together.
• The outcome of this visit will benefit not just India and Kuwait but also contribute to regional and global stability.