TRADE AND INVESTMENT: BETWEEN KUWAIT AND INDIA
Based on the information provided by the Embassy of India, Kuwait

Kuwait is a small, relatively open, petroleum based economy with heavy dependence on foreign manpower. It has always offered an open, highly competitive and affluent market for capital and consumer goods and for project exports. Indo-Kuwaiti relations have always had a trade-bias. While Indian companies did well until the 80s in terms of project exports, there has not been any significant breakthrough on the investment front since the 90s. The bilateral trade between India and Kuwait has, however, risen steadily in the post liberation period.

India-Kuwait Bilateral Trade FY 2003-08

in US$ million   2003-04 2004-05 2005-06 2006-07 2007-08 Indian Exports to Kuwait 319.09 421.44   513.73   613.87    682.12  Indian Imports from Kuwait  142.48  305.94   461.85   5,987.46   7,693.63 Total 461.57  727.38  975.59  6,601.33   8,375.75 Source: Directorate General of Commercial Intelligence & Statistics (DGCI&S), Kolkata

The sharp increase in trade figures in 2006-07 is due to the inclusion of figures of Petroleum & its products (POL) which were not included in the previous financial years. POL imports accounted for Rs. 2,557,078 lakhs in the year 2006-07.

In Rs. Lakhs   2003-04 2004-05 2005-06 2006-07 2007-08 Indian Exports to Kuwait 146,626.91 189,357.34 227,447.64 277,989.70 274,490.59 Indian Imports from Kuwait 65,472.60 137,465.05 204,478.79 2,711,417.49 3,095,993.11 Total 212,099.51 326,822.39 431,926.44 2,989,407.19 3,370,483.70 Source: Department of Commerce, M/o Commerce & Industry, GOI

* The sharp increase in trade figures in 2006-07 and 2007-08 is due to the inclusion of figures of Petroleum & its products (POL) which were not included in the previous financial years. POL imports by India from Kuwait accounted for Rs. 2,557,078 lakhs in the year 2006-07 and Rs. 2,929,129 lakhs in the year 2007-08.

The total bilateral trade between India and Kuwait in US Dollars terms increased by 26.88% from US$ 6,601.33 million in the year 2006-07 to US$ 8,375.75 million in 2007-08. In Rupee terms, it grew by 12.75% from Rs. 2,989,407.19 lakhs in FY 2006-07 to Rs. 3,370,483.69 lakhs in FY 2007-08. The difference in the growth rates in rupee and dollar terms is due to the variation in the exchange rate in corresponding years.

India’s Exports to Kuwait

The exports from India to Kuwait increased by 11.12% in US Dollars terms from US$ 613.87 million in 2006-07 to US$ 682.12 million in 2007-08. In Rupee terms, it, however, declined by 1.26% from IRs 277,989,70 lakhs to IRs 274,490.59 lakhs in the corresponding period due to appreciation of IRs vis-à-vis US$. A pie-chart showing the share of top 10 items of exports from India during 2007-08 shows that the major items exported from India were Cereals; iron & steel; meat & its preparations; nuclear reactors, boilers, machinery & mechanical appliances; electrical machinery & equipment, sound recorders, reproducers & parts; plastic & its products; dairy products, bird’s eggs, honey; vehicle & parts; coffee, tea & spices and residues & waste from the food industries & animal fodder.

Source: Department of Commerce, M/o Commerce & Industry, GOI

India’s Imports from Kuwait

India’s imports from Kuwait went up by 28.50% from US$ 5,987.46 million in 2006-07 to US$ 7,693.63 million in 2007-08. In Rupee terms, the imports rose by 14.18% from Rs. 2,711,417.49 lakhs to Rs. 3,095,993.11 lakhs in the corresponding period. A pie-chart showing the share of top 10 items of imports (excluding Petroleum & its products) from Kuwait during 2007-08 is given below. This shows the major items (other than Petroleum & its products) imported by India as organic chemicals; iron & steel; salt, sulphur, earths & stone, plastering material, lime & cement; fertilizers; aluminium, & articles thereof; plastic & its articles; inorganic chemicals & its compounds; copper & its articles and paper &its products.

Source: Department of Commerce, M/o Commerce & Industry, GOI Non-Oil Bilateral Trade Total non-oil bilateral trade between India and Kuwait grew by 2.1% from US$ 954.79 million in FY 2006-07 to US$ 1096.80 million in FY 2007-08. In Rupee terms, it rose from Rs. 432,329.19. lakhs to Rs. 441,354.02 lakhs.