Brief on India-Kuwait Trade and Economic Relation

• Home
• Economic & Commerce
• Brief on India-Kuwait Trade and Economic Relation

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

(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 (Value in billion US$)	FY 2022 -23 (Value in billion US$)
	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 (Value in billion US$)	FY 2022 -23 (Value in billion US$)
	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)

• A 2-member delegation from the International arm of the National Payments Corporation of India (NPCI), viz NIPL (NPCI International Payments Limited), visited Kuwait from 1 to 3 August 2023. They also met with officials from the Ministry of Finance, State of Kuwait as well as the Central Bank of Kuwait on 3rd August 2023.
• A 2-member delegation from MAX Healthcare, India arrived in Kuwait on 29 May 2023 and held meetings with various stakeholders in the Medical and Healthcare fields.
• A delegation comprising of high-ranking officials from the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India as well as the National Investment and Infrastructure Fund (NIIF), Confederation of Indian Industry (CII) and Invest India travelled to Kuwait to participate in the India Kuwait Investment Conference titled “UNLEASHING SYNERGIES” on 08 May 2023.
• A Multi-Product delegation from the Federation of Indian Export Organisations (FIEO) visited Kuwait from 16 to 19 October 2022.
• An Indian delegation from the Food & Beverage sector was mobilized by the Federation of Indian Chambers of Commerce & Industry (FICCI) to Kuwait from July 2 to 5, 2022.

• A delegation of tour and travel operators from India and the UAE visited Kuwait and attended the Know India Seminar 2019, which was organized by the Embassy of India, Kuwait in association with the India Tourism Office, Dubai on December 1, 2019.
• A two-member delegation from the Vibrant Tamil Nadu foundation visited Kuwait and conducted a road show in August 2019 at the Embassy of India, Kuwait
• A two-member delegation from GJEPC visited Kuwait in June 2019;
• A representative for Engineers India Limited (EIL) visited Kuwait from 24th to 27th June, 2019.
• Representatives from leading supermarkets in Kuwait attended Reverse Buyer Seller Meet (RBSM) for Indian Mangoes and Fruits held in Mumbai and Lucknow in mid-2019.
• A delegation comprising of representatives from the Vibrant Goa Foundation and Goan Business Community visited Kuwait from April 20 - 22, 2019;
• A 2-member delegation from India, led by TPCI, participated in the Kuwait International Agro Food Expo 2019 in April 2019;
• A delegation comprising representatives from several leading hospitals and healthcare providers from India visited Kuwait in March 2019 to participate in the “Best of Indian Healthcare Expo” organized by the Embassy of India, Kuwait in partnership with the Indian Business and Professional Council (IBPC), Indian Doctors’ Forum (IDF) and the Confederation of Indian Industry (CII).
• A representative of the Trade Promotion Council of India (TPCI) visited Kuwait from 03-05 November 2018.

TRADE PROMOTION EVENTS ORGANIZED BY THE EMBASSY OF INDIA, KUWAIT – FY 2022-23

AGREEMENTS AND JOINT WORKING GROUPS BETWEEN INDIA AND KUWAIT IN THE ECONOMIC FIELD

• Trade Agreement signed in February 1974. 
• Cooperation Agreement for the Promotion of Economic, Commercial and Technical Cooperation signed in February 1992. 
• Agreement for Encouragement and Reciprocal Protection of Investment signed in November 2001 and ratified in June 2003.
• Agreement on Juridical and Judicial Cooperation in Civil and Commercial Matters signed in August 2005 and ratification process completed in June 2009. 
• Agreement on Drug Demand Reduction and Prevention of Illicit Trafficking in Narcotic Drugs, Psychotropic Substances and Precursor Chemicals and Related Matters was signed in June 2006 and ratification process was completed in July 2012. 
• MOU on Labour, Employment and Manpower Development signed in April 2007. 
• MOU on Civil Aviation between India and Kuwait authorities, latest one signed in June 2007. 
• Agreement on the Avoidance of Double Taxation and Prevention of Fiscal Evasion of Taxes on Income signed in June 2006. 
• Agreement on Scientific and Technological Cooperation signed in April 2009. 
• A Joint Working Group on the Hydrocarbons Sector was set up and its first meeting was held in Kuwait in December 2009. The 6th meeting of India-Kuwait JWG on Hydrocarbon was held on 31 July 2023 virtually.
• MOU on Medical Cooperation signed in April 2012. A Joint Working Group on Medical Cooperation was set up and its first meeting was held in Kuwait in November 2013. 2nd meeting of India-Kuwait JWG on Medical Cooperation was held on 31 August, 2021 virtually.
• MOU on Youth Affairs and Sports signed in November 2013. 
• MOU between CSIR and KISR on S&T cooperation signed in November 2013.  
• MOU between KISR and Earth Systems Science Organization, Ministry of Earth Sciences on cooperation in S&T signed on 16 October 2014.  
• MOU between KISR and Indian Space Research Organization for Cooperation in the Exploration and Use of Outer Space for Peaceful Purposes on 30 September 2015. 
• The Protocol amending the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income between India and Kuwait, on 15 January 2017

                                                                                                                                             
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

• TCIL - significant presence in Kuwait since 1978
• LIC (International),
• New India Assurance Company, 
• Oriental Insurance Company and
• ONGC TERI Biotech Ltd (OTBL)

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:

• Electrical Appliances: Godrej Security Solutions, Godrej Interio, Havells, Finolex etc.
• Automobiles & allied products: Royal Enfield Bikes, Eicher Buses and Trucks, TATA Buses and Trucks, Ashok Leyland Buses and Trucks, Mahindra pick-ups, Force Mini Buses, Maruti Suzuki vehicles (under Suzuki’s name), Amaron Batteries, Servo Oil
• Tyres: Ceat, TVS, Apollo, Balkrishna, MRF, JK
• Home appliances & Products: Onida, Kenstar, Videocon, VIP Luggage, ELGI, Kent, Butterfly, Pigeon, Samrat and Nolta, Laopala

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.
****

****