Context: As many as 7-8 lakh Indians could be forced out of Kuwait if a new bill on expats is enacted into law. The legal and legislative committee of Kuwait's National Assembly has approved the draft expat quota bill, according to which Indians should not exceed 15 percent of the population. The bill will be transferred to a respective committee so that a comprehensive plan is created.

• The National Assembly's legal and legislative committee has determined that the draft expat quota bill is constitutional.
• The Gulf News reported that 'this could result in 8 lakh Indians leaving Kuwait, as the Indian community constitutes the largest expat community in Kuwait, totalling 14.5 lakh'.
• Of the 43 lakh population of Kuwait, expats account for 30 lakhs. Kuwait is also a top source of remittances for India. In 2018, India received close to $4.8 billion from Kuwait as remittances.

Key Points

• The draft expat quota bill has been deemed constitutional and will be transferred to the respective committee so that a comprehensive plan is created.
• Lawmakers and government officials including the Prime Minister of Kuwait have been calling to reduce the number of expats from 70% to 30% of the population.
• The draft law will impose a cap on the number of expats and gradually reduce them by almost 5% on a yearly basis.
• For example, if expats constitute 70% of the population this year, next year it will 65% and 60% in the following year.

Reasons Behind the Move

• Anti-expat aspirations have been rising in Kuwait since the beginning of the Covid-19 pandemic.
• Foreigners have accounted for the majority of Kuwait’s virus cases as the disease spread among migrant workers living in overcrowded housing.
• Kuwait has been working to reduce its dependence on foreign workers. It no longer wants to remain an expat-majority nation with its own citizens turning into a minority.
• This move is similar to the USA’s decision to extend the 60-day ban on immigrant and non-immigrant worker visas till the end of 2020.
• Kuwait faces problems in its population structure due to huge numbers of expats.
• Almost one-third of the expats are either illiterate or can merely read and write. They do not contribute to the country’s growth and hence, are not needed.
• The oil-price crash has also affected the country's economic conditions.

Data Analysis

• In Kuwait, expats account for 3 million out of the total population of 4.3 million.
• Indians constitute the largest expat community in Kuwait, totalling 1.45 million.
• About 28,000 Indians work in various government jobs like nurses, engineers in national oil companies and as scientists.
• Majority of Indians (around 5 lakh) work in the private sector.
• There are about 1.16 lakh dependents out of which about 60,000 are students studying in various Indian schools in the country.

India’s Perspective

• The Indian community in Kuwait has always played an important factor in bilateral ties.
• Indians are present in all segments of society in Kuwait and are largely considered disciplined, hardworking and law-abiding.
• Kuwait is a top source of remittances for India. In 2018, India received nearly USD 4.8 billion from Kuwait as remittances.
• The Indian embassy has been closely following developments related to the proposed legislation. However, India has so far not made any statement on the issue.
• Both the nations enjoy traditionally friendly relations, rooted in history and have stood the test of time. Geographic proximity, historical trade links, cultural affinities and presence of a large number of Indian nationals in Kuwait continue to sustain and nurture this long-standing relationship.
• India has been a natural trading partner of Kuwait and until 1961 Indian Rupee was the legal tender in Kuwait. India has consistently been among the top ten trading partners of Kuwait.
• Recently, the Federation of Indian Export Organizations with the participation of 11 Indian companies organized an “INDIA PAVILION” at ‘The First Kuwait International Trade Fair’, in Kuwait.
• Kuwait is a relatively diverse project market. Kuwait embarked on its Development Plan (2015-2020) under which it is expected to award contracts worth over US$ 115 billion in various sectors.

Road Ahead

• The Indian population of 920,000 in Kuwait includes nearly 28,000 employed in the government sector and more than 426,000 in the private sector. Their annual remittances to India are about $4.8 billion. “It appears the move is driven more by the downturn, which is temporary. It is a pipe dream without any understanding of the ground realities.”