indian economy relationship with kuwait

1. KUWAIT ECONOMY

2. History of Kuwait
 Kuwait was started by the Bani Utbah tribe in 1709
 The Bani Utbah first called Kuwait Guraine and their first town
was called Kuwait meaning little fort..
 In the year 1760 however Kuwait started to trade with India and
major ports on the Mediterranean Sea.
 In 1775 many Basra's leading merchant families moved to
Kuwait because of the Persian invasion. This made Kuwait's
economy greatly increase.
 After that time country was transformed into a highly
developed welfare state with a free economy.
 Kuwait's troubled relationship with neighboring Iraq
formed the core of its foreign policy from late 1980s
onwards. Its first major foreign policy problem
arosemarket when Iraq claimed Kuwaiti territory

3. DIVERSIFICATION
 Kuwait's first free-trade zone was inaugurated in 1999.
Kuwait has a well-developed banking system.
 Kuwait's revenues rely significantly on oil, increasing from
85% of total revenues in 2001 to 95% in 2013.
 Prior to the Gulf War, Kuwait was successfully diversifying
its economy.
 The development of non-oil sectors significantly declined after
the Iraqi invasion in 1990, after hundreds of companies and foreign
institutions relocated to Dubai and Bahrain
 During the past 20 years, Kuwait has not implemented any
development projects with significant economic value,
while the dependence on oil revenues has increased.
 Between 2006 and 2012, political turmoil hindered attempts

4. OIL AND CHEMICAL INDUSTRY
 In 1934, the Emir of Kuwait granted an oil
concession to the Kuwait Oil Co. (KOC),
jointly owned by the Anglo-Persian company
Gulf Oil Corporation In 1976,
 Kuwait Oil Company, (KPC) which produced
oil and gas; Kuwait National Petroleum Co.,
refining and domestic sales; Petrochemical
Industries Co., producing ammonia and
urea; Kuwait Foreign Petroleum Exploration
Co., with several concessions in developing
countries; Kuwait Oil Tanker
 KPC a worldwide presence in the petroleum
industry. Oil production was 1.5 million
barrels per day (240×103 m3/d) by the end
of 1992, and pre-war capacity was restored
in 1993. Kuwait plans to increase its
capacity to 3.5 million barrels per day
(560×103 m3/d) by 2005

5. INVESTMENTS
 The future generations fund (FGF) was
created in 1976 by transferring 50% from the
general reserve fund
 25% of all state revenues are annually
transferred to the fund.
 All of the FGF is invested abroad, with an
estimated 75% invested in the us
and Europe and the rest in emerging markets,
mainly china and India.
 Kuwait is the Arab world's largest foreign
investor, with $8.4 billion in FDI outflows in
2013.
 In 2013, Kuwait almost tripled its foreign
investments.
 Kuwait has doubled investments in the UK to
more than $24 billion.
 In 2014, Kuwait became the largest investor
in china (RMB market).

6. AGRICULTURE
 Agriculture accounts for 1% of Kuwait's
economyand 8% of the grossdomesticproduct
 The agricultural sector provides fruit and
vegetables for sale in the country's
supermarkets. Agriculture is limited by the lack
of water and arableland.
 The government has experimented in growing
food through hydroponics and carefully
managed farms. However, most of the soil
which was suitable for farmingin south central
 Kuwait was destroyed when Iraqi troops set fire
to oil wells in the area and created vast "oil
lakes".
 Fish and shrimp are plentiful in territorial
waters, and large scale commercial fishing has
been undertaken locally and in the Indian
Ocean

7. SHIPPING AND TOURISM
 The Kuwait Oil Tankers Co. has 35 crude
oil and refined product carriers and is the
largest tanker company in an OPEC
country. Kuwait also is a member of the
UnitedArab ShippingCompany.
 Sultan Gallery, Dar Al Funoon,
contemporary Art Platform (CAP), Free
Art Atelier,fa Gallery, Boushahri Gallery,,
GhadirGallery
 Bayt Lothan, Al Othman Gallery, Museum
Of Modern Art Al-makan, Den Gallery
(Shuwaikh Market)al Adwani Art Gallery,
Masaha13,amArt & DesignGallery,
 House Of Mirrors, 360 Exhibition Hall,
IndianArt Gallery, KuwaitArtsAssociation,
GalleryTilal

8. TRADE
• The Kuwaiti economy, before the discovery of oil, depended heavily on
maritime activities and trade. Kuwait was a centre for ship
building and pearl diving and fishing were important commercial activities.
• Until 1961 the Indian Rupee was the legal tender in Kuwait and Indo–
Kuwaiti commerce revolved around trade in agricultural goods, textiles and
horses
• In 2011–12, bilateral trade amounted to $17.56 billion, marking a 44% rise
over the year of Kuwait with Indian exports to Kuwait amounting to a mere
$1.1 billion in 2011–12. Indian eprevious xports to Kuwait in 2011–12
consisted of value added goods such as iron and steel products, boilers,
machinery and mechanical appliances, electrical machinery and equipment
and food items
• Kuwait is India's third largest trade partner in the Arab world and it
accounted for 3.34% of India's global imports in 2011.
• India is however Kuwait's second largest export market and its fifth largest
source of imports the top ten trading partners of Kuwait with bilateral trade
doubling to $17.5 billion in 2011–12 from $8.35 billion in 2007–08

9. GDP OF KUWAIT
 Currency: Kuwait Dinar (KD)
 Fiscal year: 1st April-31 March
 Trade : WTO,AND OPEC Organization
 GDP : $200.062 billion
 GDP Per CAP: $84309
 GDP by sector: agriculture (0.3%), industry (50.6), services
(49.1%) (2013 est.)
 Inflation CPI:2.5%
 Unemployment:3.4-2011
 Main Industry: petroleum, petro chemicals ,cement, shipbuilding and
repair,desalination,foodprocessing,constructionmaterials

10. IMPORT FROM INDIA TO KUWAIT
 Our exports to Kuwait in the last
five years are over US$1 billion.
During 2014-15, major items
exported from India to Kuwait
covered a broad range including
food items, cereals, textiles,
garments, electrical and
engineering equipment, pressure
vessel reactors, industrial valves,
boilers, machinery and mechanical
appliances, cars, trucks, buses,
tyres, chemicals, jewellery,
handicrafts, metal products, iron
and steel,

11. EXPORT FROM KUWAIT TO INDAI
 India’s imports from Kuwait during 2014-15
were US$ 13.38 billion of which POLaccounted
for US$ 12.28 billion (Crude oil import was
worth US$ 11.47 billion). The reduction in
Kuwait’s exports to India, compared to 2013-
14, was due to the sharp fall in crude oil price
in the last two quarters of 2014-15 and
reduced purchase of crude oil from Kuwait by
Indian oil PSUs. In Rupee terms, the total
imports from Kuwait were at 81,510.69 crores
during2014-15.
 Major imports from Kuwait (excluding
Petroleum & its products) were organic
chemicals, plastic and its articles, iron and
steel, aluminum and copper and articles
thereof; salt; sulphur; earths and stone;
plastering materials; lime and cement, pulp of
wood, etc.

12. IMPORT AND EXPORT
8,252.80
2,655.99
10,908.79
5,632.66
3,375.33
9,007.99
5,700.44
4,633.85
10,334.29
7,277.30 7,031.79
14,309.09
0.00
2,000.00
4,000.00
6,000.00
8,000.00
10,000.00
12,000.00
14,000.00
16,000.00
India’s Exports to Kuwait India’s Imports from Kuwait Total
IN RUPEES CORER
2010-11 2011-12 2012-13 2014-2015