Growing economic and commercial ties between India and Kuwait

Category: Embassy News
Published: Tuesday, 08 July 2014 03:58

Growing economic and commercial ties between India and Kuwait

 

            India and Kuwait enjoy historically close, warm and friendly ties.  The visit of H.H. Sheikh Jaber Al-Mubarak Al-Hamad Al-Sabah, Prime Minister of Kuwait to India in November 2013 has imparted a new thrust to the growing India-Kuwait relationship.  The bilateral trade turnover has crossed US$ 18 billion mark during the last financial year (April 2013 - March 14).  Kuwait is India’s leading supplier of crude oil and LPG.  Both countries have longstanding ties in the arena of energy security. 

2.         The current year is witnessing award of several big contracts in Kuwait to Indian companies.  Shapoorji Pallonji, Mumbai has signed a contract in April 2014 with the Ministry of Public Works for the Al-Sabah Hospital Project worth US$ 640 million and its execution would start soon. This company is also L1 as per the Central Tenders Committee (CTC) for one of the Kuwait University Projects which is worth US$ 525 million. 

3.         Kuwait Petroleum Company (KPC) has confirmed that one of the Gas Gathering Centres EPC project worth US$840 million is being awarded to Larsen & Toubro, Mumbai while another Gas Gathering Centre worth US$ 810 million would be awarded to Dodsal.  L&T, Mumbai is also L1 for a feed pipeline project worth US$ 1 billion of Kuwait Oil Company (KOC). Punj Lloyd, New Delhi  has bagged US$ 236 million KNPC’s project of revamping the Ahamadi Fuel Depot which includes design, detailed EPC and commissioning of 11 new floating roof product tanks with a capacity of about 228,000 cubic meters. Simplex Project Ltd, Kolkata has secured a subcontract worth US$ 84 million with Combined Group of Companies of Kuwait under which the Indian company would construct some service centres in Sabah Al-Ahmad City. The Energy Resource Institute (TERI), New Delhi  is already doing a pilot project worth US$ 39 million in the field of soil remediation with Kuwait Oil Company (KOC).             

4.         As regards foreign direct investment (FDI) from Kuwait to India, Kuwait investment Authority (KIA), which manages the sovereign wealth funds of Kuwait, has already made an investment of about US$ 2.7 billion in India.  KIA has further invested US$ 5.37 million in the Power Grid Corporation of India in December 2013.  Some Indian private companies such as GMR and Kotak Mahindra are in touch with KIA for attracting investments into India. 

5.         The relationship between India and Kuwait is on an upward growth trajectory.  The Government of India is keen to further strengthen and widen this special relationship with the State of Kuwait, in the coming months.