PM Modi in Kuwait to deepen mutual enrichment

Like the intricate patterns of Kuwaiti pearl jewellery, the relationship between India and Kuwait is built on trust, resilience, and shared prosperity. 

Prime Minister Narendra Modi’s visit to Kuwait underscores India’s growing role as a responsible global power, one that extends its hand to protect its citizens abroad while fostering deeper economic and strategic ties.

That it took 43 years for an Indian prime minister to visit Kuwait had more to do with Kuwait’s internal politics, where there was a power struggle within for clarity to emerge, than by design. There is also the dimension that in the early 1990s there was a chill in the relationship as India was seen as pro-Iraq. That, however, is now history.

Trade between the two countries has flourished, touching $10.47 billion, with Indian exports accounting for a modest $2 billion. Yet, the numbers tell only part of the story. Modi’s visit to an Indian labour camp, where many of the 1 million Indian workers in Kuwait, carries immense significance. The gesture followed the tragic fire in June that claimed about 45 Indian lives — an incident that brought to the fore the vulnerability of Indian expatriates. As India rises, it seeks to ensure that its ascent is mirrored by the improved welfare of its diaspora. The Indian diaspora in Kuwait sent back $3-plus billion annually. That is not small beers.

Economic ties are the bedrock of this partnership. Kuwait’s sovereign wealth fund, the Kuwait Investment Authority (KIA), has already poured $10-plus billion into India. These include significant investments in companies like Engineers India and Axis Bank. Modi’s visit is expected to catalyse a new bilateral investment treaty, providing an institutional framework that could unlock further Kuwaiti capital. Infrastructure, digital technology, and renewable energy are sectors where India hopes to lure more Kuwaiti investment. In turn, Kuwait is keen to explore India’s thriving tech and startup ecosystem.

There is a historical resonance to this economic exchange. Until 1960, the Indian Rupee was legal tender in Kuwait, a reminder of the two nations’ intertwined commercial histories. In today’s digital age, India’s Unified Payments Interface (UPI) may provide the next chapter. Kuwait’s interest in modernising its financial architecture aligns neatly with India’s digital push.

Energy remains a vital strand in the relationship. Kuwait supplies 3% of India’s oil imports. However, with cheaper Russian crude flooding the market, India is likely to press Kuwait for more competitive prices.

Beyond trade and energy, Modi’s visit signalled a shift in security co-operation. Traditionally reliant on Pakistan for military training and constabulary services, Kuwait is now exploring a more diversified approach.

Discussions around a security and defence co-operation agreement could pave the way for India to export ammunition and weaponry to the Gulf state. As geopolitical winds shift, Kuwait appears willing to hedge its bets, and India is eager to oblige.

One of Modi’s key agendas was nudging Kuwait, which currently chairs the Gulf Cooperation Council (GCC), to expedite the long-delayed free trade agreement between India and the bloc.

On this trip to Kuwait, the contours of a more comprehensive partnership have successfully taken shape — a bond fortified by shared priorities, Much like pearls and silk, India and Kuwait complement each other, reflecting the strength of a relationship that is as enduring as it is evolving.

(Ninad D Sheth is a senior journalist.)

Disclaimer: The views expressed above are the author's own. They do not necessarily reflect the views of DH.