With the visit of Amir of Kuwait to India, beginning today, the prospects of Indo-Kuwait two way trade will brighten to the extent that it is likely to more than triple to over US$ 3200 million by 2010 from current level of US $ 1000 million, according to a paper prepared on Indo-Kuwait two way trade by Associated chambers of Commerce & Industry of India (ASSOCHAM).
The paper to be released on Friday when the Amir Sheikh Ahmed al-jaber al-Sabah addresses the Indian Industry, highlights that present Indo-Kuwait trade imbalances will be almost equalised and favour neither country as India’s dependence of crude & petroleum products imports on Kuwait will substantially grow with better bilateral relations.
It may be mentioned here that currently the two way trade between India &Kuwait stagnates at US$ 1000 million, of which Indian exports to Kuwait are estimated at about US$ 650 million against our imports of around US$ 350 mllion.
Commenting on findings of the paper, ASSOCHAM Chief Mr. Anil K Agarwal said that India’s main items of exports to Kuwait comprise rice, meat and meat products, Tea, Coffee, Fresh Fruit & Vegetables, Handicrafts, Gems & Jewellery, Textiles, Engineering Goods & Transport Equipment, besides ready made garments & cement. India’s main item of import from Kuwait, however, consist of oil & petroleum products, Urea & Fertiliser, Sulphur and Naphtha.
With the visit of Amir al-Sabah, felt Mr. Agarwal, the two way trade will exceed US$ 3200 million in next four years as it has been observed in the past four-five years that Indo-Kuwait exports & imports have been rising in good proportion. The two way trade which stood at US$ 281.17 million in 2001-02, went up to US$ 430.06 million in 2002-03 before rising to US$ 713.99 million in 2004-05.
In view of ASSOCHAM, India’s crude and petroleum products imports from Kuwait will register a substantial hike, particularly in view of its growing requirements of crude oil and petroleum products which will help Kuwait to significantly offset its current trade imbalance with India and as a result the trade surplus which currently grows in favour of India will be neutralized, thus paving the way for equal two way trade between the two countries.
The areas in which the two countries cooperation will multiply include pharmaceuticals, medical equipments, equipments for use refinery and oil installation, power sector, computer software, leather products, sports goods, sophisticated furniture and consumer electronics. In the services sector also, the shift will be towards recruiting professional from both countries in the area of accounts and engineering, besides skilled, semi skilled and unskilled personnel, says the ASSOCHAM paper.
The paper adds that India and Kuwait continue to enjoy traditional friendly relations. Geographical proximity, historical trade links, cultural affinities and presence of a large number of India expatriates have all continued to sustain and nurture the longstanding relationship over the years. India has been a natural trading partner and a destination for higher learning. Until 1961, the Indian rupee was legal tender in Kuwait.
It says that there are about 5 lakh Indian staying and working in Kuwait whose presence in itself, plays a positive role in fostering India-Kuwait relations. Amongst them are old established families of Indian businessmen who have flourishing trade relations with Kuwait. More than 50% have an average monthly income of 4000 Dirhams (Rs. 56,000).
They can have their families with them and form Indian Associations and live their own cultural lives.
