West Asia crisis: Piyush Goyal meets Kuwait, UAE to restore trade, energy flows

Commerce and Industry Minister Piyush Goyal held bilateral meetings with his counterparts from Kuwait and the UAE to restore trade and energy supply flows di...

What Happened

Commerce and Industry Minister Piyush Goyal held bilateral meetings with his counterparts from Kuwait and the UAE to restore trade and energy supply flows disrupted by the West Asia conflict
With Kuwait, discussions focused on energy, infrastructure, and investment partnerships; India offered assistance to Kuwait for food security
With UAE Trade Minister Dr. Thani bin Ahmed Al Zeyoudi, talks centred on expanding India-UAE trade ties and bilateral cooperation under the India-UAE Comprehensive Economic Partnership Agreement (CEPA)
Both engagements came following the recent ceasefire declaration in the region, representing diplomatic outreach to stabilise bilateral economic channels
India confirmed that LNG industrial supplies had been restored to 80% capacity, LPG supplies continue uninterrupted, and refineries are operating at full capacity
The government announced additional measures would be forthcoming to help Indian exporters navigate trade disruptions caused by the conflict

Static Topic Bridges

India-UAE Comprehensive Economic Partnership Agreement (CEPA)

India and UAE signed a Comprehensive Economic Partnership Agreement (CEPA) in February 2022, which came into force on May 1, 2022. This was one of the fastest-concluded trade agreements in India's history, negotiated in under 90 days.

Under the CEPA, India's exports to UAE worth approximately $26 billion were made eligible for zero-duty access
India's exports to UAE include gems and jewellery, textiles, engineering goods, pharmaceuticals, and food products
Bilateral trade between India and UAE stood at approximately $85 billion in 2022-23, with UAE being India's second-largest export destination
The UAE hosts over 3.5 million Indian nationals — the largest Indian diaspora in any single country
UAE is a key hub for re-exports and transit of Indian goods to Africa, Europe, and the broader Gulf region

Connection to this news: Goyal's engagement with UAE Trade Minister Al Zeyoudi directly builds on the CEPA framework — the current conversation is about deepening CEPA implementation and ensuring supply chain continuity during the crisis.

India-Kuwait Bilateral Relations — Energy, Investment, and Diaspora

Kuwait is a significant partner for India, primarily in energy supply, investment flows through the Kuwait Investment Authority (KIA), and as a major destination for Indian workers. Kuwait accounts for a notable share of India's crude oil imports.

Kuwait Investment Authority (KIA) is one of the world's oldest sovereign wealth funds, established in 1953; it manages an estimated $750 billion in assets
India and Kuwait signed a Strategic Partnership agreement in 2024, upgrading bilateral ties
India sources approximately 4-5% of its crude oil imports from Kuwait
An estimated 1 million Indian nationals work in Kuwait — sending significant remittances back to India
India's food exports to Kuwait include rice, sugar, fruits, and vegetables; India's offer of food security assistance strengthens this relationship

Connection to this news: India's offer of food security assistance to Kuwait — a small but wealthy Gulf nation highly dependent on food imports — demonstrates India's positioning as a reliable partner, leveraging its food production surplus for strategic diplomatic capital.

India's Energy Security Architecture

India is the world's third-largest importer of crude oil and fourth-largest importer of LNG. Approximately 89% of India's petroleum requirements are met through imports, creating structural vulnerability to Gulf supply disruptions.

India's crude oil import basket: Gulf countries account for approximately 46% of total imports (reduced from 72% in 2017-18 due to diversification toward Russia)
Russia's share of India's crude imports rose from 1% in 2021 to approximately 36% by 2024
Qatar supplies approximately 42-45% of India's LNG and around 20% of its LPG imports
India's Strategic Petroleum Reserves (SPR): three underground storage facilities at Vishakhapatnam, Mangaluru, and Padur — total capacity of 5.33 MMT covering approximately 9.5 days of consumption
India is not a member of the International Energy Agency (IEA) — which recommends 90-day strategic reserves — though India participates in IEA events as an Association Country

Connection to this news: Goyal's Gulf outreach is a direct function of India's energy import dependence. Restoring trade and energy flows is not merely commercial diplomacy — it is a national energy security imperative.

India's Diplomacy in West Asia — Strategic Autonomy and Economic Interests

India maintains a distinct approach to West Asia — often described as "strategic autonomy" — engaging with all parties in the region (Israel, Arab states, Iran) without formally aligning with any bloc. This is underpinned by three core interests: uninterrupted energy supplies, remittances from the Indian diaspora, and trade access.

India follows a multi-vector foreign policy in West Asia — it maintains strong ties with Israel (defense cooperation, Haifa port investment) while simultaneously deepening ties with Arab Gulf states
India abstained or voted cautiously on UNGA resolutions related to the West Asia conflict, reflecting its strategic balancing act
India's "Look West" policy (distinct from "Look East") encompasses deepening ties with the Gulf, and more recently formalised through the India-Middle East-Europe Economic Corridor (IMEC), launched at the G20 Summit in New Delhi (2023)
IMEC aims to create a multimodal connectivity corridor linking India to Europe via the Gulf states and Israel, reducing dependence on the Suez Canal route

Connection to this news: Goyal's engagement with Kuwait and UAE, alongside Jaishankar's UAE visit and Puri's Qatar visit, represents a coordinated multi-ministry diplomatic surge — demonstrating India's whole-of-government approach to Gulf outreach during the energy crisis.

Key Facts & Data

India-UAE CEPA: signed February 2022, in force May 2022; India's exports of ~$26 billion made eligible for zero duty
UAE bilateral trade with India: ~$85 billion (2022-23); UAE is India's second-largest export destination
Indian diaspora in UAE: 3.5 million; in Kuwait: ~1 million
Kuwait Investment Authority: established 1953; manages ~$750 billion in assets
India's crude import dependence on Gulf: ~46% (down from 72% in 2017-18)
Industrial LNG supplies restored to 80% capacity following ceasefire
India's Strategic Petroleum Reserves: 5.33 MMT (~9.5 days coverage) at three underground caverns
IMEC (India-Middle East-Europe Economic Corridor): launched G20 New Delhi Summit, September 2023