Bilateral Brief on India-Kuwait Economic and Commercial Relations
OVERVIEW
Kuwait is a small, rich, relatively open, petroleum-based economy. It has estimated crude oil reserves of 101.5 billion barrels (about 6% of world reserves), and proven natural gas reserves of 1.784 billion cubic meters (about 63 trillion cubic feet) (source: latest OPEC data). Oil revenues constitute the main source of income and amount to approximately 94% of the state’s revenues. (Central Statistical Bureau, State of Kuwait).
Kuwait offers an open, competitive and affluent market for consumer goods and project exports, and a relatively diverse project market, the 4th largest amongst the GCC countries after the UAE, Saudi Arabia, and Qatar. The country has a Sovereign Wealth Fund (SWF) of over US$ 700 billion, which is managed by the Kuwait Investment Authority (KIA).
Historically, Indo-Kuwaiti relations have always had an important trade dimension. India has consistently been among the top trading partners of Kuwait. During FY 2021-22, Kuwait was the 8th largest oil supplier to India and it met about 5.1% of India’s total energy needs. Total bilateral trade with Kuwait during FY 2020-21 was US$ 6.268 billion, while trade recorded in FY 2021-22 was US$ 12.243 billion, a growth of almost 95% YOY. The trend of bilateral trade during the years FY 2017-18 to FY 2021-22 is as follows:
Bilateral trade between India and Kuwait FY 2017-18 to FY 2021-22
Values in US$ billions
Year |
FY 2017-18 |
FY 2018-19 |
FY 2019-20 |
FY 2020 -21 |
FY 2021 -22 |
INDIA’S EXPORT TO KUWAIT |
1.365 |
1.334 |
1.286 |
1.054 |
1.242 |
INDIA’S IMPORT FROM KUWAIT |
7.166 |
7.431 |
9.574 |
5.214 |
11.001 |
TOTAL TRADE |
8.531 |
8.765 |
10.860 |
6.268 |
12.243 |
(Source: M/o Commerce & Industry, India)
INDIA’S MAJOR TRADE WITH KUWAIT
Exports to Kuwait (during FY 2021-22)
S. No |
Commodity |
FY 2020-21 |
FY 2021-22 |
|
TOTAL |
1.054 |
1.241 |
Source: Department of Commerce, M/o Commerce & Industry, GOI
Top five items of Exports to Kuwait (during FY 2021-22) were Cereals; Organic Chemicals; Electrical Machinery & Equipment; Ceramic Products; and Mechanical machinery.
Top five items of Imports from Kuwait (during FY 2021-22)
Sl. No |
Commodity |
FY 2020-21 |
FY 2021-22 |
|
Total |
5.214 |
11.001 |
Source: Department of Commerce, M/o Commerce & Industry, GOI
Top five items of Imports from Kuwait (during FY 2021-22) were Mineral Fuels, Mineral Oils and Products of Their Distillation; Bituminous Substances; Mineral Waxes; Organic Chemicals; Copper & copper articles; Aluminium & aluminium articles; and Iron & Steel.
INDIA – KUWAIT TRADE DELEGATIONS:
Visits to Kuwait (last 5 years)
Visits to India (last 5 years)
RECENT TRADE PROMOTION EVENTS ORGANIZED BY THE EMBASSY OF INDIA, KUWAIT – FY 2022-23
Sr. no. |
Date |
Name of Event |
20 Apr 2022 |
VBSM on Indian Mangoes in association with APEDA |
|
12 May 2022 |
Indian Mangoes Festival and tasting seminar |
|
21 June 2022 |
Indian Tea Tasting Event |
|
23 June 2022 |
West Bengal State Facilitation event |
|
3 Jul 2022 |
Business and Networking event with FICCI F&B delegation to Kuwait |
|
11 Aug 2022 |
Incredible India - Promotion of Indian Tourism - Bus campaign |
|
17 Aug 2022 |
Promotion of Indian Millets |
|
7 Aug 2022 |
Celebration of Indian National Handloom Day |
|
1 Sep 2022 |
Kerala State Facilitation Event on occasion of Onam |
|
29 Sep 2022 |
Madhya Pradesh State Facilitation Event |
|
17 Oct 2022 |
Business and Networking event with FIEO Multi Product delegation to Kuwait |
|
26 Oct 2022 |
Destination Goa – A State Facilitation Event |
|
2 November 2022 |
Karnataka Rajyotsava State Facilitation Event |
AGREEMENTS AND JOINT WORKING GROUPS BETWEEN INDIA AND KUWAIT IN THE ECONOMIC FIELD
KUWAITI BUSINESSES IN INDIA
Significant Kuwaiti presence in India includes those by Alghanim Group of Kuwait; KAPICO group; National Aviation Services; Agility Logistics, Hasibat Holding Co, KGA Group, KCIC, KIPCO, Global Investment House, Kuwait Finance House, Noor Investment, etc. among others.
Several India-related funds have also been launched in Kuwait in the past few years and among them are India Fund; Tijari India Fund - launched by the Commercial Bank of Kuwait); India Equity Fund - Sharia compliant fund launched by the Kuwait and Middle East Financial Investment Company; Kuwait India Holding Company - Sharia compliant; launched by Noor Financial Investment Company; Indian Private Equity Fund - Sharia compliant fund launched by the Khaleej Finance and Investment of Bahrain, Kuwait Investment Company and Kuwait Finance House; India Private Equity Fund - launched by National Bank of Kuwait; and 3rd Real Estate Islamic Fund - Sharia compliant fund launched by National Bank of Kuwait for China and India.
UTI Asset Management Company in July 2009 set up a US$ 500 million infrastructure - focused private equity fund - the India Infrastructure Development Fund (IIDF) - in association with Noor Financial Investment Company of Kuwait (NOOR) and HSH Nordbank of Germany.
INDIAN INVESTMENTS IN KUWAIT
Indian public and private sector companies in the finance and insurance sector which have investments in Kuwait are - LIC (International), New India Assurance, Oriental Insurance Company, HDFC Ltd. These companies are present in Kuwait for many years. They have their offices in Kuwait, in association with local sponsors, as per prevailing regulations.
INDIAN PUBLIC SECTOR UNDERTAKINGS (PSUS) IN KUWAIT
PRESENCE OF INDIAN CORPORATE SECTOR IN KUWAIT
Major Indian companies having presence in Kuwait include EPCs such as L&T, Shapoorji Pallonji, Kalpataru Power Transmission Ltd, TERI, Essar Projects, Simplex Projects, as well as IT/ITES firms including Tata Consultancy Service (TCS) and Tech Mahindra. Indian EPCs have been executing projects in various sectors in Kuwait. Notable Indian companies/brands in Kuwait include:
Larsen & Toubro Limited |
Essar Projects Limited |
The Energy Resource Institute (TERI) |
Shapoorji Pallonji |
TATA Consultancy Services |
Tech Mahindra |
UTI Asset Management Company |
HDFC Limited |
Himalaya Drug Company |
Godrej Security Solutions |
Royal Enfield (KAICO) |
Shalimar Valves |
Mahindra & Mahindra Ltd |
Maruti Suzuki |
TATA Motors (Zayani) |
Ashok Leyland (Al-Sayer) |
Force Motors |
EICHER Motors Ltd. (KAICO) |
PRESENCE OF INDIAN BRANDS IN KUWAIT
Several Prominent Indian brands have presence in Kuwait. Few of them are summarized below:
INDIAN RUPEE DRAWING AGREEMENT WITH KUWAIT
The Indian community with a presence of approx. 1 million in Kuwait, sends annual remittances to India through several leading Exchange Houses in Kuwait, such as Muzaini Exchange Company; Al Mulla International Exchange Company; Bahrain Exchange Company; Aman Exchange Company WLL; Lulu Exchange Company WLL; Dollarco Exchange Company; Kuwait India International Exchange Company; Kuwait Bahrain International Exchange Company; City International Exchange Company; Joy Alukkas Exchange Company WLL; Al-Ansari Exchange Company; UAE Exchange Center; National Exchange Company etc. These exchange houses have Rupee Drawing Agreement with Indian Banks.
BUSINESS ACTIVITIES OF INDIAN COMMUNITY IN KUWAIT
The Indian community with a strength of approx. 1 million is the largest expatriate community in Kuwait and is regarded as the community of first preference among the expatriate communities. Professionals like engineers, doctors, chartered accountants, scientists, software experts, management consultants, architects; technicians and nurses; retail traders and businessmen are present in Kuwait, though a large proportion consists of unskilled and semi-skilled workers.
The Indian Business Community in Kuwait has carved a niche in the Kuwaiti market in retail as well as distributorship. Many of the business houses have been present in Kuwait for three to four generations.
The Indian Business and Professional Council (IBPC) an association of about 200 business persons in Kuwait who are actively involved in promoting India-Kuwait business relations.
Presence of NRI owned retail outlets such as Lulu Hypermarket (Lulu International) and CentrePoint (Landmark Group), as well as large NRI owned distributor companies have contributed to a growing range of Indian products in Kuwait and has helped meet the requirements of the large Indian community in Kuwait.
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