ShareBy Ambassador Satish Mehta
I was taken by surprise when India's new envoy to Kuwait Ambassador Dr Adarsh Swaika suggested that I write a piece for the Indian Republic Day 2023. Notwithstanding my demanding travel schedule for my philanthropic work, this was a request that had to be honored. Republic Day is a special occasion in every Indian's life and Kuwait holds a very special place in my heart. The very warm memories of unfurling our beloved tiranga in front of the majestic and iconic Indian Embassy building, popularly known as the 'Red Fort' due to its captivating design resembling a fort and use of red sandstone for elevation, resurfaced. Not just that, the two and a half years I spent between 2011-2013 in Kuwait as India's Ambassador are replete with fond remembrances of the affection I received from Kuwaiti and Indian friends alike.
Traditionally, India's Republic Day on 26th January is celebrated with much enthusiasm and pageantry at the Republic Day parade which showcases not just India's military and defense capabilities, particularly the rapid advancements made in developing indigenous technologies, but also floats and performances from various parts of India depicting its rich diversity in arts, traditions, customs and costumes, flora and fauna and all that truly makes us the Incredible India. It's both a depiction and celebration of India.
But this year's celebrations carry special significance as this will be the first Republic Day parade at the newly refurbished, rechristened and rejuvenated two-kilometer long road from Rashtrapati Bhawan (President's House) to India Gate which was inaugurated by Prime Minister Modi on September 8, 2022 and renamed 'Kartavya Path', symbolizing transition from colonial era power and mindset to Republican ideals and commitment to nation building. This renovation is part of the larger redevelopment of the larger Central Vista area which will have a new parliament building, new offices for various Ministries, new residences for the Vice President and Prime Minister. The larger story behind this physical and psychological change in India is a narrative that we should not miss out.
In the last over seven decades since its Independence and becoming a Republic, India has witnessed many trials and tribulations as also triumphs. The lessons have been learnt and internalized and correctives initiated. Notwithstanding the havoc caused by a Black Swan event like COVID and a highly stressed global economic scenario, India continues to grow at a healthy rate of about 7%, confounding its critics and cynics but inspiring its people and its friends. It made and administered COVID vaccines to over a billion Indians and, true to its age old belief in Vasudevaya Kutumbkam (the world is a family), shared vaccines generously with about 100 other countries as a true friend. India lived its beliefs and walked its talk.
Today India is not just the 5th largest economy in the world but on course to become the third largest economy in the next few years. In an indication of what lies ahead, we have already become the 3rd largest car market in the world. But this is just the beginning of the India Story as the big triggers of next round of growth are being put in place through massive investments in the digital and physical infrastructure, revamping and re-energising its education system, and making policies people and growth centric.
Let me start with the digital where a silent but transformative and game changing revolution is underway. Mobile telephony is India, with over 1.15 billion connections, is ubiquitous; 1.3 billion, including over 99% of adult population, are enrolled under Aadhaar, the unique identification system; over 850 million have internet access; over 750 million use social media; data cost which was about US $4 per GB in 2014 was 10 cents per GB in 2022 - amongst the lowest in the world-supporting rapid growth in data consumption; rollout of 5G has begun; and common public platforms have been built like the UPI leading to tremendous growth and reduction of friction and cost in financial transactions; Direct Benefit Transfers to the beneficiaries of various government support programs are paperless, seamless, and intermediary-less, saving the government over $30 billion. Right from paying rent to a cup of tea at the road side joint, payments can be made and received instantly. Even though merely 6 years old, UPI transactions in 2022 exceeded 74 billion surpassing some of the well established credit cards in number of transactions and is now being used in many countries.
Physical infrastructure creation, the lack of which had stymied India's manufacturing ambitions, is now receiving a massive boost. From indigenously developed Vande Bharat trains to new metro systems in dozens of cities, to making highways at over 28 kilometers per day in the last financial year. Soon, the new Mumbai-Delhi access-controlled highway will make it possible to travel between these two cities in 12 hours. New ports, new airports, waterways, too are sprouting all over the country. Catching up on giving India first class infrastructure, a precursor for rapid industrialization, is well and truly on the way.
While India didn't make the most of the opportunities earlier, it is determined to make up the lost time through rapid industrialization leveraging its growing market and the large skilled work force, by offering incentives and support to domestic and foreign companies. This in essence is the campaign to make India not just aatmnirbhar (self-sufficient) but also a global manufacturing hub.
Massive incentives have been given for a semiconductor manufacturing facility, and the Production Linked Incentive scheme is attracting large new investments in automobiles and components, Electric vehicles and batteries, pharmaceuticals and APIs, textiles, electronics, just to name a few sectors. Initial outcomes are very positive - for the first time Apple exported phones worth over a billion US dollars last month from India and by 2027, a quarter of all Apple phones are expected to be made in India.
The results of the combination of business acumen, high skills, growth oriented policies, and financial incentives are already visible through the spurt in entrepreneurship. Helped by the digital revolution, India has over a 100 UNICORNS, the third highest in the world. Despite many headwinds, India ranked second in the number of new UNICORNS it created in 2022. Today India is the bright spot on global economic firmament, lending it both stability and hope.
India and Kuwait - A meeting of minds and hearts
Like Indians, Kuwaitis are enterprising and have a native and intuitive business sense. Trading with India was an important source of wealth creation for Kuwaiti businessmen even decades after Kuwait found oil. Whether for education or healthcare or for recreation or to enjoy its rich cultural heritage and natural beauty, India, and in particular, Bombay (now Mumbai) was the preferred destination for Kuwaitis. Indian rupee was a legal tender in Kuwait. The Amir of Kuwait bought a building in the 1950s on the iconic Marine Drive of Mumbai to be his home during his regular visits to India which is called the Al Sabah court. These are but just a few examples.
Oil price boom generated much resources for Kuwait which it used to rapidly modernize, facilitated with the participation of India's skilled engineers, technicians and work force, which even now continues to be the preferred work force in Kuwait. As oil wealth grew in Kuwait the roles reversed. Indians started looking at Kuwait for wealth creation and opportunities.
As India's energy requirements grew, Kuwait became an important source of oil for India. And not just an important source, but based on my own experience, I can safely assert that it became a very reliable source of oil. On more than one occasion, I was told at very high levels in the Kuwaiti government that India's oil requirements will be given the highest priority by Kuwait. This was but one reflection of the strong bonds of friendship, mutual trust and deep understanding.
In recent decades, as India grew, Kuwait participated in Indian growth - both to support it as also to benefit from it. The growing investments in India by Kuwait Investment Authority, which manages Kuwait's sovereign wealth, as also by private groups in India tell their own story.
Perhaps not so well known is the fact that Kuwait has been generous in sharing its wealth with developing countries by assisting them, but doing it quietly and without much fanfare. This generation may not know but for the Asian Games in 1982, they built a stadium in Delhi.
Kuwait and India - A glorious future beckons
For India, the Gulf countries are the largest source of oil and gas imports, the largest trading partner, home to over 8 million Indians, source remittances said to exceed $50 billion every year, and an increasing source of investments. Stability of this region is of direct interest to India. Given its close bilateral relations with each of these countries, the mutual trust it enjoys with them, the time has come for India to play a larger role in the stability in the region working bilaterally with each of these countries as also through regional groupings.
While with some countries India has strategic partnerships, with Kuwait its historic partner this isn't the case yet. A first step could be to elevate the relationship to strategic partnership. This will also create the political and psychological framework for both countries to take a long term view of the bilateral relations and make the required investments.
As India moves ahead economically and technologically - it is already a powerhouse in Information Technology, Pharmaceuticals, Space, Renewable Energy, Automobiles, Fintech, Start-ups in a range of sectors - to name a few - new opportunities are unfolding for Kuwait to actively participate in India for mutually beneficial cooperation by investing in India's infrastructure, renewable energy, petrochemicals to name a few sectors, in addition to portfolio investments in Indian companies.
It is not far-fetched to believe that oil will lose salience as a fuel, though its other uses as feedstock for petrochemicals would remain. Kuwait should, and perhaps is planning for a post-oil economy which is not dependent only on incomes from investments abroad. Kuwait can team up with Indian companies and become a base for manufacturing for the GCC market and the regional market leveraging free trade within GCC and geographic proximity to other countries in the region.
Many large Indian EPC companies, with enviable track record, have already proved themselves in Kuwait. The two governments need to work closely to give these companies more opportunities in Kuwait for mutual benefit, may be in return for Kuwait's investments in these companies.
A combination of Indian companies' technical know-how and capabilities and Kuwait's financial strength could be leveraged to participate in third-country projects.
There is a life beyond economics. Relations with other countries and peoples should also have a dimension of empathy, care, compassion, and human solidarity. Both India and Kuwait have believed in it and have helped other countries selflessly. They should come together and do some joint humanitarian projects in other developing countries to give relevant, meaningful and impactful assistance.
In 2020, India lost two very good friends in Kuwait - His Highness Sheikh Sabah Al-Ahmad Al-Sabah, the Amir of Kuwait and his elder son His Excellency Sheikh Nasser Sabah Al-Ahmed Al-Sabah, First Deputy Prime Minister and Defense Minister. It will be a worthy tribute to them to elevate India-Kuwait relations to strategic partnership.
(The writer was India's Ambassador to Kuwait during 2011-2013. Views expressed are his own)
