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Thursday, Apr 09, 2009
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India-Kuwait entente seen

Atul Aneja

Positive outcome from Vice-President’s visit

Ready to consider aspects of counter-terrorism
Support for Obama reaching out to Iran

KUWAIT CITY: India and Kuwait have aligned their perceptions on the global economic slowdown and the regional tensions generated in the Gulf nation’s volatile neighbourhood.

Diplomatic sources said that during Vice-President M. Hamid Ansari’s three-day visit here that concluded on Wednesday, the Kuwaiti side said it favoured long-term stability in oil prices.

Kuwait was of the view that a return to the surging oil prices of the past would deepen the global recession, and that was not in the long-term interest of the oil-producing nations.

On the contrary, analysts say oil prices ruling below the $55-a-barrel mark would discourage investments needed to keep up the production of oil, the demand for which would return strongly once the recession was over.

Lower oil prices would especially hamper deep-sea oil exploration, which required heavy investments.

On Iran

Iran, Gulf security and terrorism featured prominently in the talks. On Iran, Kuwait was of the view that it was better to engage with Iran rather than pursue a path of confrontation, the sources said. Consequently, Kuwait is supporting the recent attempt by U.S. President Barack Obama to reach out to Iran.

Kuwait hoped that the situation in neighbouring Iraq would stabilise, despite the declaration by the Americans that they would exit from Iraq and step up their force strength in Afghanistan. Through its high-capacity port facilities, Kuwait could help in transiting Indian goods into Iraq.

Both sides expressed concern over the destabilising impact of terrorism. The sources said the two countries were ready to consider all aspects related to counter-terrorism, including intelligence-sharing.

Maritime security

Discussions were held on ensuring maritime security that would allow unimpeded transit of oil tankers carrying crude from the Gulf towards India. The sources said these talks were held in the larger context of Gulf security that would involve all the six countries of the Gulf Cooperation Council (GCC): Saudi Arabia, Kuwait, Qatar, Bahrain, the United Arab Emirates (UAE) and Oman.

During the Vice President’s visit, Kuwait expressed its commitment to invest in India’s infrastructure, especially in power distribution, airport and port development projects.

Modest investments

Kuwait’s Finance Minister and the head of the Kuwait Investment Authority (KIA) told Mr. Ansari that Kuwait had already made modest portfolio investments in India.

The sources said Kuwait has shown greater inclination to invest in India after Kuwaiti investors lost heavily on their real estate investments, especially in the neighbouring recession-hit Gulf countries.

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