Kuwait City on June 12, 2024

The story so far: A devastating fire in Kuwait’s southern district of Al-Mangaf claimed the lives of around 40 Indians. The blaze, which erupted in an apartment building in the Al Ahmadi Governorate early on Wednesday, resulted in a total of at least 49 migrant worker fatalities. Additionally, over 50 people sustained injuries in the incident.

The Kerala government on Thursday announced an ex gratia compensation of ₹5 lakh for the families of those from the state who died in the Kuwait fire tragedy and ₹1 lakh for those injured. Minister of State for External Affairs Kirti Vardhan Singh has arrived in Kuwait to oversee assistance for the injured Indians.

 

Indians in Kuwait
Indians have a substantial presence in Kuwait, with the two countries historically maintaining cordial relations. The Indian rupee served as legal tender in Kuwait for over a century until 1961. Today, nearly a million Non-Resident Indians (NRIs) reside in Kuwait, forming the largest expatriate community in the country.

 

According to data from the Embassy of India in Kuwait, Indians constitute 21% of Kuwait’s total population and 30% of its workforce. The Gulf War in the early 1990s significantly affected the Indian population in Kuwait, with over 1.7 lakh Indians needing evacuation by sea and air (via Jordan) by the Government of India. However, many gradually returned as conditions improved. Before the liberation war, Palestinians were the largest expatriate community in Kuwait, but their numbers dwindled, allowing Indians to become the largest expatriate group.

 

From a manpower perspective, Kuwait holds significant importance for India. However, as of July 2023, there were no strategic partnerships between India and Kuwait, according to Ausuf Sayeed, former Secretary (Consular, Passport, Visa, and Overseas Indian Affairs).

It seems like you’re interested in discussing India’s relations with Kuwait and the agreements between the two countries. India has indeed been focusing on enhancing its relationship with Kuwait, as indicated by the Foreign Office Consultations and the numerous bilateral agreements in progress.

 

The Bilateral Investment Promotion Agreement (BIPA) between India and Kuwait, which was initially signed for 15 years and expired in 2018, highlights the economic cooperation between the two nations. Efforts to renew or update such agreements are crucial for maintaining and deepening bilateral ties, especially in areas like trade, investment, and manpower exchange. Kuwait City on June 12, 2024

 

If you have specific changes or further details you’d like to discuss regarding these agreements or any other aspect of India-Kuwait relations, feel free to let me know

The Gulf Cooperation Council (GCC) is indeed a regional organization comprising six member states: Saudi Arabia, United Arab Emirates (UAE), Oman, Kuwait, Qatar, and Bahrain. It was established on May 25, 1981, in Riyadh, Saudi Arabia, with the primary objectives of promoting cooperation and integration among its members.

 

Key aspects of the GCC include:

1. Regional Cooperation: The GCC fosters collaboration among member states in various fields such as economics, finance, trade, customs, tourism, legislation, and administration.

2. Political Unity: While the GCC emphasizes political and military coordination, its primary focus has been on economic integration and collective security arrangements.

3. Cultural and Social Ties: The member states share cultural and historical ties, which contribute to closer collaboration and understanding.

4. Institutional Framework: The organization operates through various committees, councils, and ministerial meetings to address common challenges and opportunities.

5. Regional Stability: GCC member states often work together to address regional security issues and have been involved in mediation efforts within the Gulf region. Kuwait City on June 12, 2024

 

The GCC plays a significant role in the geopolitics of the Gulf region and serves as a platform for its members to pursue shared interests and goals. Each member state contributes to and benefits from the collective efforts aimed at enhancing regional stability, economic prosperity, and social development.

The Indian communities in GCC countries play a crucial role in several aspects that are vital to India’s economy and national development:

1. Remittances: Indians working in GCC countries contribute significantly to India’s economy through remittances. As per the Ministry of External Affairs’ report, remittances from Non-Resident Indians (NRIs) in the Gulf region alone have amounted to billions of dollars annually. These remittances serve as a stable and substantial source of foreign exchange for India, contributing to economic stability and growth. Kuwait City on June 12, 2024

 

2. Labor Force: Indian expatriates form a large portion of the labor force in GCC countries, particularly in sectors like construction, healthcare, information technology, and hospitality. Their contribution helps meet the demand for skilled and unskilled labor in these nations, supporting their infrastructure development and economic activities.

 

3. Diplomatic and Cultural Bridges: The Indian diaspora in GCC countries serves as a bridge for diplomatic and cultural exchanges between India and the Gulf region. They facilitate deeper people-to-people connections, promote Indian culture and values abroad, and strengthen bilateral relations between India and each GCC member state.

 

4. Investment and Trade: Many Indians in the Gulf region are also involved in business and entrepreneurship, contributing to investment flows between India and GCC countries. Their presence helps expand trade relations and fosters economic partnerships, benefiting both regions. Kuwait City on June 12, 2024

 

5. Community Support: Indian communities in the GCC provide mutual support networks, cultural associations, and social services that enhance the well-being and integration of Indian expatriates. This community cohesion strengthens their overall contribution to the host countries and facilitates smoother functioning within the local society.

 

In summary, the Indian diaspora in GCC countries is pivotal due to their economic contributions through remittances, their role in the labor market, their impact on bilateral relations, and their cultural and community ties that foster closer ties between India and the Gulf region. Their presence underscores a significant dimension of India’s global engagement and economic strategy. Kuwait City on June 12, 2024

 

The committee’s recognition of the potential to enhance inward remittances from the Gulf Cooperation Council (GCC) countries underscores the importance of formulating diaspora-centric policies. These policies would aim to safeguard the welfare of the Indian diaspora while fostering conditions that encourage increased remittances.

 

Furthermore, the significant economic relationship between India and the GCC is highlighted by their substantial trade volumes. In the fiscal year 2022-23, bilateral trade reached approximately $184 billion, marking a notable 20% increase from the previous year. This growth underscores the mutual economic benefits derived from robust trade ties between India and the GCC member states. Kuwait City on June 12, 2024

 

In addition to trade, discussions are underway regarding the possibility of establishing a Free Trade Agreement (FTA) between India and the GCC. Such an agreement has the potential to further bolster economic cooperation, reduce trade barriers, and stimulate investments between the two regions.

 

In summary, the GCC region not only serves as a critical source of remittances but also represents a pivotal economic partner for India, as evidenced by burgeoning trade relations and prospects for deeper economic integration through initiatives like a potential Free Trade Agreement. This underscores the strategic importance of the GCC in India’s economic diplomacy and global engagement efforts. Kuwait City on June 12, 2024

 

The Ministry of External Affairs (MEA) has articulated its strategic approach towards GCC countries, aiming for a comprehensive relationship that extends into energy cooperation. This entails several key initiatives:

 

1. Strategic Petroleum Reserves: India is encouraging GCC countries to participate in its strategic petroleum reserves (SPRs). This collaboration is crucial for enhancing India’s energy security by diversifying its sources of crude oil supply and ensuring reserves against supply disruptions. Kuwait City on June 12, 2024

 

2. Long-Term Gas Supply Arrangements: Negotiating long-term gas supply agreements with GCC countries is another priority. Securing stable and predictable gas supplies helps meet India’s growing energy demand, particularly in sectors like power generation, industry, and transport. Kuwait City on June 12, 2024

 

3. Concessions in Oilfields: Seeking concessions in oilfields in GCC countries is aimed at securing direct investments and participation in upstream oil exploration and production activities. This strategy not only enhances India’s access to crude oil but also strengthens economic ties and mutual investment opportunities.

 

4. Renewable Energy Cooperation: Beyond fossil fuels, there’s an emphasis on renewable energy cooperation. This includes partnerships in solar and wind energy projects, leveraging the GCC’s potential in renewable resources and India’s expertise in technology and project management.  Kuwait City on June 12, 2024

 

These initiatives reflect India’s strategic intent to deepen its energy cooperation with the GCC countries, aligning with its broader goals of energy security, economic development, and sustainable growth. By fostering closer ties in energy, India seeks to strengthen its bilateral relations with the GCC and capitalize on mutual benefits in the energy sector.

 

Kuwait City on June 12, 2024