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    Home»World»India’s Rupee Legal in Kuwait Until 1961: Strong Ties Explored

    India’s Rupee Legal in Kuwait Until 1961: Strong Ties Explored

    World January 17, 20262 Mins Read
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    India’s Rupee Legal in Kuwait Until 1961: Strong Ties Explored
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    New Delhi has long cherished its multifaceted partnership with Kuwait, a key player in the Gulf region. This relationship spans energy security, trade, and a massive Indian diaspora, making Kuwait one of India’s most vital allies in the Middle East.

    Diplomatic ties between the two nations were forged immediately after Kuwait’s independence in 1961. Mutual respect for sovereignty and territorial integrity forms the bedrock of this bond. India has consistently championed peace and stability in the Gulf, while Kuwait has backed India’s positions on global forums time and again.

    A fascinating historical footnote: Until 1961, the Indian Rupee served as legal tender in Kuwait. With a population of over 5 million and a compact area of 17,818 square kilometers, Kuwait punches above its weight in global energy markets.

    Regular high-level exchanges, including foreign ministry consultations and prime ministerial visits, keep the momentum alive. Prime Minister Narendra Modi’s landmark trip to Kuwait on December 21-22, 2024—the first by an Indian PM in 43 years—further solidified this alliance. The last such visit was by Indira Gandhi in 1981.

    Trade roots trace back centuries, from dates and horses before oil dominated. Post-World War II, commerce evolved into energy exports. Kuwait supported India during the 1962 Sino-Indian war but tensions arose in 1990 over India’s perceived tilt toward Iraq during the Gulf crisis.

    Today, nearly 1 million Indians form Kuwait’s largest expatriate community, powering sectors like healthcare, construction, IT, and domestic services. India imports crude oil, LPG, petrochemicals, aircraft parts, and sulfur from Kuwait. In return, Kuwait buys Indian rice, spices, pharmaceuticals, textiles, and IT services.

    Under Modi’s leadership, these ties have deepened, promising a brighter future for bilateral cooperation in energy, investment, and people-to-people links.

    Energy security India GCC partnership India India Gulf ties India Kuwait relations India Kuwait trade Indian Rupee in Kuwait Kuwait Indian diaspora PM Modi Kuwait visit
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