KUWAIT-INDIA BILATERAL RELATIONS

AN INTERACTION WITH SOCIETY FOR POLICY STUDIES (SPS)

ON

THURSDAY JUNE 11, 2015

AT

THE EMBASSY OF THE STATE OF KUWAIT

NEW DELHI.

* Kuwait and India enjoy well routed and friendly relations which are bound by historical,

geographical and cultural affinities.

* The late Prime Minister of India, Shri Jawaharlal Nehru strongly supported the

Independence of Kuwait in 1961 appreciating the well being of strong relations between

the two countries.

* The diplomatic relations between Kuwait and India were established immediately after

Kuwait's independence . India opened its Embassy in Kuwait in 1964 and the Embassy

of the State of Kuwait in Delhi was opened in 1964. The first Kuwaiti Ambassador, His

Excellency Mr. Yaqoub Abdul Aziz Al-Rashid presented his credential to the Indian

President, Dr. S. Radhakrishnan on 13 August, 1964.

* The two countries exchanged many high level visits which strengthened relations and

broadened the horizons and cooperation in many fields.

* The two countries exchanged to build partnership throughout many decades which was

based on mutual understandings and benefits.

* The relations between the two countries exchanged and encouraged by broad legal

frameworks consisting of more than 30 agreements and MOUs.

Exchange of very high level visit between leaders of Kuwait and India

From Kuwait to India: These have included those by the Crown Prince and Prime Minister Sheikh Sabah Al-Salem Al – Sabah in 1964 the Amir Sheikh Jaber Al-Ahmed Al-Jaber Al Sabah in 1980 and again in 1983 (for the NAM Summit), the Amir Sheikh Sabah Al-Ahmed Al-Jaber Al Sabah in 2006 and the Prime Minister Shiekh Jaber Al- Mubarak Al-Hamed Al-Sabah in Nov 2013.

From India to Kuwait: These have been made by Hon’ble vice president of india, Dr. Zakir Husain in 1965, by Prime Minister Smt. Indira Gandhi in 1981 and by Hon’ble Vice President of India Shri Hamid Ansari in 2009.

Kuwait is considered among the great commercial partners to India because of geographical affinity. India is the second main oil

importer from Kuwait after South Korea whereas Kuwait is the third main oil exporters after Saudi Arabia and Iraq.

Bilateral Trade between the two countries (excluding oil) amounts to 2085.16 million dollars during the fiscal year 2013-14 and India

became among the top 10 exporters to Kuwait.

Kuwait imports from India fuel, foodstuff like rice, tea, coffee, fruits and vegetable, and cements, mechanical and electrical machinery

and handicrafts.

Kuwait exports to India oil, fertilizer, petrochemical, iron ore and aluminium.

Elements of the Economic, Educational and Technical cooperation between the State of Kuwait and Republic

of India

Labour and employment

Trade

Investment

Finance

Energy

Petroleum

Petrochemicals and Fertilizers

Labour and employment

Trade

Investment

Finance

Energy

Petroleum

Petrochemicals and Fertilizers

Science and Technology

Information Technology

Communications

Education and Health

Civil aviation

Science and Technology

Information Technology

Communications

Education and Health

Civil aviation

Labour and Employment• The number of Indian Expatriates in Kuwait is about 560000 comprising

technicians , engineers, doctors, professional and service workers.

• The Indian Community forms the largest expatriate group.

• Memorandum of Understanding (MOU) regulates the cooperation between two countries in employment and manpower was signed in Kuwait in 2006.

• Indian Expatriates remittances is about US$ 4-5 Billion in 2014.

• The first meeting of the JWG on labour, employment and manpower development was held in Kuwait in 2008. The second meeting was held in Kuwait in January 2010 . The third meeting was held in India in 2012.

• In order to move ahead the process of JWG, Kuwait and India signed a document on August 17, 2010 which aims at further strengthening bilateral cooperation in employment and manpower development by regulating recruitment in a legal; and orderly way.

• The number of Indian Expatriates in Kuwait is about 560000 comprising technicians , engineers, doctors, professional and service workers.

• The Indian Community forms the largest expatriate group.

• Memorandum of Understanding (MOU) regulates the cooperation between two countries in employment and manpower was signed in Kuwait in 2006.

• Indian Expatriates remittances is about US$ 4-5 Billion in 2014.

• The first meeting of the JWG on labour, employment and manpower development was held in Kuwait in 2008. The second meeting was held in Kuwait in January 2010 . The third meeting was held in India in 2012.

• In order to move ahead the process of JWG, Kuwait and India signed a document on August 17, 2010 which aims at further strengthening bilateral cooperation in employment and manpower development by regulating recruitment in a legal; and orderly way.

INVESTMENT AND FINANCE

* Kuwait Investment Authority (KIA) is an established investor in the Indian Capital

market and private equity funds.

* The major investment interest of Kuwait among others was in the areas of real

estate, financial sector, infrastructure and IT at present.

* A proposal of formation of joint ventures for setting up fertilizer plants with

Indian Fertilizer Companies in both the public and private sector.

* A preliminary agreement to set up a holding company to promote investment in

both countries.

* Kuwaiti Investment in India amounted to US$ 3 billion of which US$ 2.7 billion

is by Kuwait Investment Authority (KIA).

* Kuwait Investment Authority (KIA) in India includes Al-Ghanim Group of

Kuwait; the KAPICO group; NAS; Agility Logistics, Hasibat Holding Co. KGA

Group, KCIC, KIPCO, Global Investment House, Kuwait Finance House etc.

Kuwait India Bilateral Trade and Economic Cooperation

Period 2003-2004

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009 2009-2010 2010-2011

2011-2012

2012-2013 2013-2014

Kuwaiti Imports from India (million $)

319,09 421,44 513.73 613,87 682,12 797,50 782,45 10905 1,81,41 1060 1065.14

Kuwaiti Export to India(million $)

142.48 305,94 461.85 5,987,63 7,693,63 9,593,74 8,249,49 10,302 16,569 569,16 17,153.52

Total 461,57 727,38 975,59 6,601,33 8,385,75 10,391,24 9,031,94 12,207 17,556,78

17,629 18,218.66

India-Kuwait Bilateral Trade F.Y. 2003-2014

Period 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014Kuwaiti Imports from India (million $) 780.23 1813.29 1174.66 1046.77 1053.42Kuwaiti Export to India(million $) 339.69 584.55 708.26 850.67 1031.74

Total 1119.92 2397.84 1882.92 1897.44 2,085.16

Bilateral Trade Exchange (Oil Excluded) from 2009-2014

Cooperation in Hydrocarbon

* India is the second main oil importer of Kuwait oil after South Korea.

* Kuwait is the third largest supplier of crude oil to India after Saudi Arabia and Iraq. Kuwait accounts

for 10% of India's crude oil imports. India imported US$15,74 billion worth of crude oil from Kuwait in

the year 2013-2014.

* Kuwait exports 400,000-450,000 barrel per day. Indian Oil customers: (IOC) BPCL,BORL, HMEL,

NKPLL, HPCL. India's interests in participation through ONGC & IOC in the northern oil field

development in Kuwait.

* India's interest in investment in petrochemicals sector in Kuwait.

* Joint collaboration in hydrocarbon sector.

* Joint Working Group (JWC) was founded in 2011-2012 to promote hydrocarbon cooperation. First

meeting was held in December 2009 in Kuwait. The second meeting was held in India in 2012. The

third meeting was held in Kuwait in June 2014.

Kuwait-India mutual interests

* Long term crude oil supply to India (10-15 years)

* Building and establishing Strategic reserve/hub for Kuwaiti Crude Oil.

* Downstream investment opportunities in petrochemicals.

* Upstream Oil exploration in India - cooperation also in 3rd countries.

* Training programs in the upstream and downstream hydrocarbon sectors.

* Utilization of India's Clean Development Mechanism (CDM) project initiative to mutual

advantage.

* Opportunities available in India for investment and joint ventures/collaborations in the

petroleum and related sectors.

* Possibility for bidding with the Indian firm in the forthcoming round of NELP (New

Exploration Licensing Policy)

Science & Technology, information Technology & Communications, Health and Education

Research &development

Research projects with application potential in medium to long term

Joint venture with commercial values

Molecular diagnostic

Stem cell

Water science and technology

Research &development

Research projects with application potential in medium to long term

Joint venture with commercial values

Molecular diagnostic

Stem cell

Water science and technology

Environmental/climate modeling

Occupational health

Communicable/ endemic and genetic diseases

Biotechnology

Alternate energy

Opportunity of civil nuclear cooperation

Environmental/climate modeling

Occupational health

Communicable/ endemic and genetic diseases

Biotechnology

Alternate energy

Opportunity of civil nuclear cooperation

Scientific and technical cooperation between Kuwait and India

A Delegation from the Kuwait Institute for Scientific Research (KISR),

headed by the Director-General’s visit to India during the period from

18 to 23 November 2013 and held talks with Department of Science &

Technology (DST) & Council for Scientific & Industrial Research (CSIR )

concluded by signing a cooperation agreement between the Kuwait

Institute

for Scientific Research and the Indian government in the field of

cooperation in science and technology. Also a memorandum of

understanding between the Kuwait Institute for Scientific Research

and the Indian Council for Scientific Studies was signed.

CIVIL AVIATION

* Kuwait and India are operating direct flights between Kuwait and numbers of Indian

cities.Kuwait Airways have daily direct flights to Delhi, Mumbai, Cochin, Chennai

and Trivandrum.

* Kuwait Airways will operate direct flights to Ahmadabad and Bangalore from

September 2015

* Increase capacity entitlements (5200 to 12000 seats).

* Provide access to additional points in India (Ahmadabad, Bangalore from September

2015.

* Opening new roots for private airlines .

* From India to Kuwait there are a number of direct flights operated by Air India, Jet

Airways and soon a service of Spice jet will operate to Kuwait

S. No.

Name of Company Project /Month of award of contract

Amount InUS$

 1.             

Simplex Project Ltd, Kolkata Subcontract with Combined Group of Companies of Kuwait to construct some service centres in Sabah Al-Ahmad CityJanuary 2014 

84 million

2.             

Punj Lloyd, New Delhi  KNPC’s project of revamping the Ahamadi Fuel DepotJuly 2014  

236 million

3.             

Shapoorji Pallonji, Mumbai 

Al-Sabah Hospital Project March 2014

640 million.

Kuwait University ProjectsDecember 2014 

514 million

4.             

Larsen & Toubro, Mumbai 

Ministry of Electricity & Water’s project.EPC of 7 nos. 132/11 KV SubstationApril 2014

80 million

Gas Gathering Centre GC 30;EPC project by Kuwait Petroleum Company (KPC)August 2014

840 million

Ministry of Electricity & Water’s project / Kuwait Institute of Scientific Research (KISR)’s project.EPC of 7 nos. 132/11 KV SubstationSeptember 2014 

19 million

5.             

Dodsal, Mumbai  

Gas Gathering Centre;EPC project by Kuwait Petroleum Company (KPC)August 2014

810 million

Effluent water project of KOCSeptember 2014 

927 million

  Total   US$ 4.15 billion

 

Contracts awarded to Indian companies in Kuwait in 2014

Cooperation in developing Projects

India received 8 developing loans through

Kuwait Fund for Arabic Development with total

amount of KD 81,870,000 (US$ 292,915,913).

India received 8 developing loans through

Kuwait Fund for Arabic Development with total

amount of KD 81,870,000 (US$ 292,915,913).

Transform Kuwait into a world class financial and commercial centre.

Reasons to invest in Kuwait

* Stable Regime

* Open Market Economy

* Strategic location

* Ambitious New Development Plan

* Accommodating legal framework + laws

* Strong macroeconomics + high GDP/Capita

* Strong currency sound financial system +active SE

* Investor Grade in sovereign rating & low political risk

* FDI Incentives & friendly living environment to foreigners

* Adequate basic & ICT infrastructure + public utilities

* Quality health care, education, shopping, culture & entertainment

* Moderate business costs especially fuel, labour, electricity and water

* Extensive trade relations & agreements (WTO, GCC, GAFTA, BITs & DTTS

* High degree of deepening integration into the Global Market

* Low Corporate Tax & no Income Tax for Individuals nor other Taxes

* Rich with strategic Oil resources

Kuwait: Selected Economic Indicators, 2005 – 12            Prel. Proj. Proj.  2005 2006 2007 2008 2009 2010 2011 2012Oil and gas sector                Total oil and gas exports (in billions of U.S. dollars)

42.4 53.2 59.1 82.6 46.6 61.7 86.8 91.8

AverageOIL EXPORT  price (in U.S. dollars/barrel)

50.6 61.2 70.4 93.7 58.2 76.4 105.0 105.8

CRUDE OIL production (in millions of barrels/day)

2.57 2.64 2.57 2.68 2.26 2.31 2.42 2.52

(Annual percentage change, unless otherwise indicated)National accounts and pricesNominal GDP MARKET  prices, in billions of Kuwaiti dinar)

23.6 29.5 32.6 40.0 31.5 38.1 48.7 52.3

Nominal GDP (market prices, in billions of U.S. dollars)

80.8 101.6 114.7 148.8 109.5 132.8 173.1 185.9

Real GDP (at factor cost)

10.4 5.3 4.6 5.0 -4.5 3.3 5.2 5.5

Real oil GDP 12.1 2.8 -2.6 3.3 -11.3 3.2 3.6 4.5Real non-oil GDP 10.6 8.3 11.1 5.6 -0.1 3.4 6.1 6.1CPI inflation (average)

4.1 3.1 5.5 10.6 4.0 4.1 6.1 3.5

Unemployment rate (Kuwaiti nationals)

3.8 4.0 6.1 4.9 3.6 2.9 ... ...

 External sector                Exports of goods 45.3 56.5 62.6 87.0 51.7 68.4 95.7 100.7Of which: non-oil exports

2.9 3.3 3.5 4.4 5.1 6.7 8.8 9.0

Annual percentage change

22.9 14.6 6.4 25.1 16.0 33.2 30.9 1.6

Imports of goods -15.1 -16.2 -19.1 -22.9 -17.3 -19.1 -23.0 -24.9Annual percentage change

21.4 7.9 17.7 20.0 -24.7 10.3 20.5 8.4

Current account 30.1 45.3 42.2 67.3 25.9 38.3 59.8 63.6In percent of GDP 37.2 44.6 36.8 45.2 23.6 28.9 34.6 34.2External debt including private sector

20.2 30.8 57.5 60.6 57.5 ... ... ...

International reserve assets

8.1 11.8 15.9 16.7 17.7 18.7 23.1 25.3

In months of imports of goods and services

4.1 5.3 5.9 5.3 6.8 6.9 7.0 7.1

 Memorandum items                EXCHANGE RATE (U.S. dollar per KD, period average)

3.42 3.45 3.52 3.72 3.48 3.49 ... ...

Kuwait as a Humanitarian Center, Partnership in Development

*Kuwait has realized since early the importance of economic and development support in building strong relations

of friendship and achieving political stability and security.

*Kuwait set asides part of its annual income to support the humanitarian needs and development plans and

programs to friendly countries.

* Kuwait established right after the independence the Kuwait Fund for Arab Economic Development KFAED on

December 31, 1961 with a capital of 200 million Kuwaiti dinars, the capital increased to become two billion Kuwaiti

dinars.

*The number of countries benefiting from loans are 104 countries, and the number of loans were given upto now

889 with total value in Kuwaiti Dinars 5,402 billion which equivalent to US$18,368 billion.

*In recognition of the international community for this leading role in supporting the International Development

the United Nations honored His Highness the Amir of Kuwait Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah on

09.08.2014 giving him the title "a leader of humanity”. UN also honored Kuwait as an international center for

humanitarian work.

* Since the Amir of Kuwait Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah took over in 2006 , he successfully managed to

put Kuwait in the heart of the international humanitarian work and adds new dimension to global diplomacy which is

the "humanitarian diplomacy".

* Kuwait hosted numerous of international and regional conferences, events and initiatives including the first, II and III

conferences for donors to Syria in order to aid the Syrian afflicted people. The donation of Kuwait was $ 300 million for

Syrian refugees in the first conference while offered $ 500 million US in the second conference and donated the same

amount at the Third Conference. As well as the Kuwaiti aid to Syrian refugees since the outbreak of the Syrian crisis in

2011 where several humanitarian aid campaigns launched and led by charities which handed over to Syrian refugees’

relief supplies.

* Kuwait continues to provide financial support to the Palestinians and the Palestinian cause which comes in

continuation to its solidarity and support to the Palestinians brothers where the Amir of Kuwait announced in 2009

donation of $ 34 million to an agency of the United Nations Relief and Works Agency for Palestine Refugees in the

Near East (UNRWA) believing it humanitarian role played. Kuwait has also made a commitment for $ 300 million to

support the Palestinian Authority in the donor to the Palestinians Conference held in Paris in December 2007. In

March 2009 Kuwait pledged $ 200 million to the Palestinian Authority over five years, and part of the reconstruction in

the Gaza Strip program. Kuwait signed with the World Bank in November 2012 an agreement provides $ 50 million for

the reform and development program (PRDP),and another $ 10 million to the Palestinians.

* Kuwait has also taken the initiative to provide assistance to countries affected by the natural disasters.

*The Kuwaiti humanitarian and developmental vision was ensured through contribution to the fight against

poverty and hunger by His Highness the Amir of Kuwait's initiative to create a decent life fund, as well as to

donate $ 100 million to support basic foodstuffs to the needy in a practical and urgent way.

*The Amir of Kuwait also announced the donation of a grant of 10 million dollars for the least developed Member

States in the Organization of Islamic Cooperation (OIC).

*Two major summits held in Kuwait in order to strengthen economic and political cooperation.

The third Afro-Arab Summit held in November 2013 and Arab Summit held in March 2014. The

two summits have achieved good results.

*In 2009 the first Arab economic summit which Kuwait hosted also witnessed Kuwaiti donation

of $ 500 million to help finance small and medium enterprises (SMEs) throughout the Arab world. Kuwaiti Fund

for Development organized in 2010 International Donors Conference and investors to eastern Sudan which the

contributions amounted so far to $ 500 million.

*Kuwait also announced the establishment of one billion dollar fund to achieve the development goals of Asian

countries and the fulfillment of the Millennium Development Goals of the United Nations (Millennium

Development Goals). His Highness the Amir of Kuwait also announced to contribute $ 300 million for the program

in the first summit of the Asian Cooperation Dialogue (ACD), which is also held in Kuwait in 2012.

H شكرًا

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