Kuwait – India: Opportunities for Further Leverage

Executive Summary

India and Kuwait have historically shared significant trade relations. India has consistently been among the top ten trading partners of Kuwait and, Kuwait has consistently been one of the largest suppliers of crude oil to India. In addition to being the trading partner, India has also been a destination for higher learning for Kuwaitis. Until 1961, the Indian Rupee was the legal tender in Kuwait. Geographic vicinity, historical trade links and presence of a large number of Indian expatriates continue to sustain and nurture this long-standing relationship. Several decrees and agreements were signed to regulate bilateral relations between the two countries. Bilateral trade has been rising steadily in recent years, and Kuwaiti investment in India has been largely indirect through portfolio managers. There remains an untapped potential for an expansive relationship, as both countries are attempting to grow at a rapid pace, and redefine their value globally. This report analyzes the lessons on offer from India, and possibilities for potential tie-ups in areas of Kuwaiti interest.