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 2022-23, Kuwait was the 9th largest oil supplier to India and it met about 4.08% of India’s total energy needs. Total bilateral trade with Kuwait during FY 2021-22 was US$ 12.243 billion, while trade recorded in FY 2022-23 was US$ 13.807 billion, a growth of 12.78% YOY. The trend of bilateral trade during the years FY 2018-19 to FY 2022-23 is as follows:
Bilateral trade between India and Kuwait 2018-19 to FY 2022-23
Values in US$ billions
Year |
FY 2018-19 |
FY 2019-20 |
FY 2020 -21 |
FY 2021 -22 |
FY 2022 -23 |
INDIA’S EXPORT TO KUWAIT |
1.334 |
1.286 |
1.054 |
1.242 |
1.560 |
INDIA’S IMPORT FROM KUWAIT |
7.431 |
9.574 |
5.214 |
11.001 |
12.247 |
TOTAL TRADE |
8.765 |
10.860 |
6.268 |
12.243 |
13.807 |
(Source: M/o Commerce & Industry, India)
INDIA’S MAJOR TRADE WITH KUWAIT
Exports to Kuwait (during FY 2022 -23)
S. No |
Commodity |
FY 2021-22 |
FY 2022 -23 |
|
TOTAL |
1.242 |
1.560 |
Source: Department of Commerce, M/o Commerce & Industry, GOI
Top five items of Exports to Kuwait (during FY 2022-23) were Cereals; Organic Chemicals; Electrical Machinery & Equipment; Vehicles and Ceramic Products.
Top five items of Imports from Kuwait (during FY 2022 -23)
Sl. No |
Commodity |
FY 2021-22 |
FY 2022 -23 |
|
Total |
11.001 |
12.247 |
Source: Department of Commerce, M/o Commerce & Industry, GOI
Top five items of Imports from Kuwait (during FY 2022-23) were Mineral Fuels; Organic Chemicals; Aircrafts & parts; Plastics and Iron & Steel (scrap).
INDIA – KUWAIT TRADE DELEGATIONS:
Visits to Kuwait (last 5 years)
TRADE PROMOTION EVENTS ORGANIZED BY THE EMBASSY OF INDIA, KUWAIT – FY 2022-23
Sr. no |
Date of Event |
Name of event |
19 April 2022 |
Virtual Buyer Seller Meet on Indian Mangoes |
|
20 April 2022 |
Tech Startups in India’, a social media live presentation |
|
27 April 2022 |
State Facilitation Event focused on Gujarat |
|
12 May 2022 |
Indian Mango Festival in association with APEDA, India |
|
25 May 2022 |
State Facilitation Event “ODISHA, INDIA'S BEST KEPT SECRET” |
|
29 to 31 May 2022 |
Indian Handloom Exhibition at Sadu House, Kuwait. |
|
25 May 2022 |
State Facilitation Event Goa Statehood Day |
|
21 June 2022 |
Indian Tea Promotion: Tea Tasting event |
|
21 June 2022 |
West Bengal State Facilitation Event |
|
7 August 2022 |
National Handloom Day in Kuwait |
|
August 2022 |
Incredible India Tourism Promotion Bus Campaign |
|
September 2022 |
State facilitation events focusing on the states of Kerala & Madhya Pradesh |
|
26 October 2022 |
State Facilitation Event focusing on the state of Goa |
|
2 November 2022 |
State Facilitation Event on Karnataka |
|
26 January 2023 |
Incredible India Exhibition at the Hotel Crown Plaza |
|
26 January 2023 |
Culinary demonstration of Indian Millets at the National Day Reception |
|
15 to 21 February 2023 |
Finale Event Millets Week in Kuwait |
|
18 March 2023 |
Coffees of India Exhibition & Coffee Tasting Event |
|
March 2023 |
'Incredible India' State Tourism Photo Exhibition at Dar Al Athar Islamiyah- Yarmouk Cultural Center. |
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; Asiya Investments, Agility Logistics, Hasibat Holding Co, KGA Group, KCIC, KIPCO, Global Investment House, Kuwait Finance House, Noor Investment, etc. among others.
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 |
MEIL |
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:
BUSINESS ACTIVITIES OF INDIAN COMMUNITY IN KUWAIT
The Indian community with a strength of about 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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