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TRADE AND INVESTMENT: BETWEEN KUWAIT AND INDIA

Based on the information provided by the Embassy of India, Kuwait

India-Kuwait Bilateral Trade and Economic Cooperation

Kuwait is a small, relatively open, petroleum based economy with heavy dependence on foreign manpower. It has always offered an open, highly competitive a relations have always had a pro trade-bias, and bilateral trade has, risen steadily since 1991. India-Kuwait trade was US$ 9.03 billion in 2009-2010, of which non-oil trade accounted for approximately US$ 1.1 billion while petroleum exports from Kuwait to trading partners of Kuwait. As per Indian Government sources, the trade during 2006-2010 was as follows:
India-Kuwait Bilateral Trade FY 2006-10

2006-07 Indian Exports to Kuwait Indian Imports from Kuwait Total 614.81 5,993.23 6,608.04

2007-08 681 7,704 8,385

2006-07 Indian Exports to Kuwait Indian Imports from Kuwait Total 2,77,989.70 27,11,417.49 29,89,407.19

2007-08 2,74,490.59 30,95,993.03 33,70,483.61

Source: Depa Note : POL imports accounted for US$ 5,646.65 million (Rs. 25,57,078 lakhs) in the year 2006-07, US$ 7,278.97 million (Rs. 29,29,129 lakhs) in the year 2007-08 and (Rs 37,39,130.13 lakhs) in the year 2009-10. Total bilateral trade between India and Kuwait in US$ terms increased by 7.7% from US$ 8385.79 million in the year 2007-08 to US$ 9,031.94 million in 2009-10. In lakhs in 2009-10. The difference in the growth rates in rupee and dollar terms is due to the variation in the exchange rate in corresponding years.
Indias Exports to Kuwait

The exports from India to Kuwait increased by 14.80% in US$ terms from US$ 681.54 million in 2007-08 to US$ 782.45million in 2009-10. In Rupee terms, it inc period. A pie-chart showing the share of top 10 items of exports from India during 2008-09 shows that the major items exported from India were Cereals, Meat and Ed thereof; Articles of Apparel and Clothing Accessories, Nuclear Reactors, Boilers, Machinery and Mechanical Appliances, Residues and Waste from the Food Ind Aquatic Invertebrates.

Source: Department of Commerce, Minist

Indias Imports from Kuwait

Indias imports from Kuwait went up by 7.07% in US$ terms from US$ 7704.25 million in 2007-08 to US$ 8,249.49 million in 2009-10. In Rupee terms, the imports period. Indias imports from Kuwait (excluding POL) were US$ 339.69 million in 2009-10. A pie-chart showing the share of top 10 items of imports (excluding Petroleum & its products) from Kuwait during 2009-10 is given below. The major items i Fertilisers, Aluminium and Articles thereof, Salt; Sulphur; Earths and Stone, Inorganic Chemicals; Organic or Inorganic Compounds of Precious Metals, Copper Miscellaneous goods.

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Source: Departmen
Kuwait is the largest supplier of crude oil to India from the Gulf region after Saudi Arabia. India imported Rs. 37,39,130.13 lakhs (US$ 7.9 billion) worth of POL fr
Non-Oil Bilateral Trade

Total non-oil bilateral trade between India and Kuwait grew by 2.77 % from US$ 1,089.72 million in 2007-08 to US$ 1,119.92 million in 2009-10. In Rupee terms, it
India-Kuwait Non-Oil Trade FYs 2007-10

2007-08 Indian Exports to Kuwait Indian Imports from Kuwait Total 674.98 414.74 1,089.72

2008-09

Source: Department of Co

2007-08 Indian Exports to Kuwait Indian Imports from Kuwait Total 2,71,864.46 1,66,863.42 4,38,727.88

2008-09

Source: Department of Co
Bilateral Agreements between India and Kuwait in Economic Field

1. 2. 3. 4. 5. 6. 7. 8.

Agreement on the Avoidance of Double Taxation and Prevention of Fiscal Evasion of Taxes on Income entered into force from October 17, 2007 on income Memorandum of Understanding (MoU) on Labour, Employment and Manpower Development signed on April 10, 2007 has been ratified by both sides. Agreement on Drug Demand Reduction and Prevention of Illicit Trafficking in Narcotic Drugs, Psychotropic Substances and Precursor Chemicals and Relate Agreement on Juridical and Judicial Cooperation in Civil and Commercial Matters signed on August 16, 2005 is awaiting ratification; Agreement for Encouragement and Reciprocal Protection of Investment signed on November 27, 2001 and ratified on June 28, 2003. Memorandum of Understanding (MoU) on Civil Aviation authorities, latest one signed in June 2007. Agreement on Scientific and Technological cooperation signed in April 2009. MoU between the Public Authority for Industry (PAI) of Kuwait and Indian Importers Association (IIA) based in New Delhi in May 2006 wherein IIA will prom in its appointed territory for the Kuwaiti manufacturers introduced to it by PAI. 9. The Kuwait Chamber of Commerce & Industry (KCCI) signed an MoU with the Associated Chambers of Commerce & Industry (ASSOCHAM) during the State Amir of the State of Kuwait. The MoU foresees promotion of trade, investment, scientific and technical cooperation between the India and Kuwait.

Indian Companies in Kuwait

Telecommunications Consultants India Limited (TCIL), Life Insurance Corporation of India (International) , Life Insurance Corporation of India (LIC) Housing Fin Company India Ltd. (NACIL) have their offices in Kuwait, in association with local Kuwaiti sponsors, as per the prevailing regulations. Besides, there are privat large projects, particularly in the oil sector, and thus have sizeable establishments in Kuwait.
Kuwaiti Investment in India

According to the figures released by the Department of Industrial Promotion & Policys Secretariat for Industrial Assistance (SIA), Kuwaiti investment in India ha Much of the Kuwaiti investments, however, have gone into India through portfolio management. Kuwaiti FDI has also gone into India through international inve with the implementation of the Double Taxation Avoidance Agreement between the two countries which came into effect on April 1, 2008. Following the visit to India by His Highness the Amir of the State of Kuwait, considerable interest has been generated among Kuwaiti investors in the Indian m infrastructure, power, financial services, real estate, and information technology. The Kuwait Petroleum Company (KPC) through its international arm, t petrochemicals sector.
India Funds

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The Kuwait Investment Authority has made regular portfolio investments in the stock market in India and through leading international financial managers. Foreign Institutional Investors (FIIs) from Kuwait is not available. However, India-related funds launched in Kuwait include: India Fund [launched by Al-Madina October 2005]; Tijari India Fund: [launched by The Commercial Bank of Kuwait on December 9, 2006]; India Equity Fund [launched by The Kuwait and Middle E (KIHC) [launched by Noor Financial Investment Company ]; Indian Private Equity Fund [promoted by Khaleej Finance and Investment from Bahrain, Kuwait In National Bank of Kuwait (NBK); 3rd Real Estate Islamic Fund [launched by NBK in May 2007]; and Mayur Hedge Fund [launched by Global Investment House, Kuwa By August 2010, KIHC has been able to raise US$ 120 million to set-up private property fund for investments in the infrastructure projects in India. In Septemb since its inception. AMFIC stated that in 2010 alone, the growth touched 9.2%, as a result of good performance of Indias share market. In July 2009, UTI Asset Management Company set up a private equity fund worth $500 million with Kuwait's Noor Financial Investment Company and HSH Nordba such as roads, ports, power, logistics, airports and energy among others.
Civil Aviation

Following talks between civil aviation delegations of India and Kuwait held in Kuwait on June 28 30, 2007, an MoU was signed with both sides reaffirming th sides also agreed to increase capacity entitlements of each side from 8,320 to 12,000 seats per week. The designated carriers of Kuwait were granted access to Bangalore with effect from the winter of 2008. Both sides reached a common understanding that in future traffic rights and capacity entitlements would be u countries. Air India, Jet Airways and Kuwait Airways currently operate direct flights to various important destinations in India. National Aviation Services (NAS), a Kuwait

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