Kuwait City, March 7 (IANS) It is a relationship fostered by the large Indian workforce but with untapped economic potential. Keen to invigorate its trade ties with Kuwait, India has asked its envoy in the oil-rich Gulf country to come up with an action plan to take mutual trade relations to a new level.
Official sources said that India's External Affairs Minister S.M. Krishna, who visited Kuwait for two days last week to attend the 50th anniversary celebrations of the country's independence, talked of immense possibilities of Kuwaiti investment in infrastructure in his bilateral meetings with Foreign Minister Sheikh Mohammed Sabah Al-Salem Al-Sabah.
They said Krishna had told Indian Ambassador Ajai Malhotra to come up with an action plan "to strengthen economic relations and to take trade ties to higher level".
Krishna said that greater potential in economic and trade ties between the two countries needs to be tapped.
Bilateral trade between India and Kuwait is currently estimated to be about $10.5 billion annually, of which oil trade accounts for nearly $9 billion.
Kuwait is a major supplier of oil and oil products to India accounting for 10-12 percent of the total import. It is the largest supplier of crude oil to India from the Gulf after Saudi Arabia.
Krishna apprised the Kuwaiti minister about the efforts India is making for infrastructure development and said that investment in the area was welcome.
India plans to raise about $1 trillion during the 12th five year plan, which starts April 2012, to fund a huge infrastructure development programme.
As part of the efforts to raise resources, the government has already announced a series of steps to boost Foreign Direct Investment in infrastructure in this year's budget.
Official sources said that investment from Kuwait into India has been largely through portfolio management, through international investment companies or through countries providing tax breaks such as Mauritius and Singapore and as a result not reflected in official statistics.
Krishna, who met a cross-section of Indian community during his visit, said that relations between the two countries were mutually beneficial taking into consideration the large presence of Indian workforce in Kuwait.
Krishna's suggestion to the Indian community was to get more integrated into the Kuwaiti society without interfering in the country's politics or internal affairs.
Official sources said Kuwait's foreign minister told Krishna that the administration appreciated contributions that Indian community has been able to make.
The sources said that Indians in Kuwait are regarded as the community of first preference among expatriates because they are seen to be capable, sincere, trust-worthy, law abiding and non-interfering in the internal affairs of the Gulf country.
They said that Indian community has played an important and positive role in furthering India-Kuwait ties.
Official sources said that size of Indian community in the Kuwait Jan 16 this year was 745,125, of which 638,281 had long-term residency status.
Indians comprise the biggest expatriate community in Kuwait followed by people from Egypt (about 413,000) and Bangladesh (195,000).
Of the Indians in Kuwait, the largest number hail from Kerala followed by those from Andhra Pradesh, Tamil Nadu, Karnataka and Goa.
The private sector in Kuwait accounts for largest proportion of employment for Indians. While around 270,000 Indians are employed in the private sector, 234,000 are working as domestic workers.
Remittances from Kuwait to India has been estimated at about $3.5 billion annually.