Indian diaspora in Gulf region GS: 2 "EMPOWER IAS"

 

In news:

• A total of eight lakh Indians could be forced to leave Kuwait as it’s National Assembly committee has approved a draft expat quota bill seeking to reduce the number of foreign workers in the Gulf country.

 

India is the world’s top recipient of remittances with its diaspora sending a whopping $79 billion back home in 2018 a/c to the World Bank. It is followed by China (USD 67 billion), Mexico (USD 36 billion), the Philippines (USD 34 billion), and Egypt (USD 29 billion).

 

Draft expat (expatriate) quota bill

• Recently, the legal and legislative committee of Kuwait’s National Assembly has approved the draft expat (expatriate) quota bill.
• According to the bill, Indians should not exceed 15% of the population and if it is enacted into law, over 8 lakh Indians could be forced out of Kuwait.
• Kuwait is a country located in the Persian Gulf region.

 

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.

 

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.

 

Why Kuwait is introducting the bill now?

• The anti-expat sentiment in the Gulf nations has been a recent trend which has been exacerbated by the Covid-19 pandemic and a slump in oil prices.
• The protectionist sentiments found a larger support base as foreigners have accounted for the majority of Kuwait’s Covid-19 cases as the disease spread among migrant workers living in overcrowded housing.
• In recent weeks, several Kuwaiti public figures demanded to curtail the number of expatriates accusing them of straining the health facilities.

 

How doest the bill affect Indian ex-pats?

• According to the Indian embassy in Kuwait, there are about 28,000 Indians working for the Kuwaiti Government in various jobs like nurses, engineers in national oil companies and a few as scientists.
• The majority of Indians (5.23 Lakh) are deployed in private sectors.
•  In addition, there are about 1.16 lakh dependents. Out of these, there are about 60,000 Indian students studying in 23 Indian schools in the country.
• If the bill becomes a law, it will reduce the Indian presence in Kuwait by 7-8 lakhs and will prove to be a big blow to India’s remittance economy which is considerably dependent on Gulf nations.
• 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.

 

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

 

 

 

What is the Expat Bill about?

• Amid a slump in oil prices and the coronavirus pandemic, there has been a spike in anti-expat rhetoric as lawmakers and government officials call for reducing the number of foreigners in Kuwait.
• According to the bill, Indians should not exceed 15% of the population.
• The draft once turned to the law will impose a cap on the number of expats and gradually reduce them by almost 5% on a yearly basis.

 

A demographic issue

• Kuwait has a real problem in its population structure, in which 70% are expats.
• The 1.3 million of the 3.35 million expats are either illiterate or can merely read and write.
• Kuwait has also been working to reduce its dependence on foreign workers.

 

A huge diaspora at stake:

• There are about 28,000 Indians working for the Kuwaiti Government in various jobs like nurses, engineers in national oil companies and a few as scientists.
• The majority of Indians (5.23 lakh) are employed in private sectors. In addition, there are about 1.16 lakh dependents.
• Out of these, there are about 60,000 Indian students studying in 23 Indian schools in the country.

 

Impact on Indians:

• The current population of Kuwait is 4.3 million, with Kuwaitis making up 1.3 million of the population, and expats accounting for 3 million.
• This bill would result in 8,00,000 Indians leaving Kuwait, as the Indian community constitutes the largest expat community in the country, totalling 1.45 million.
• As the MEA says, Indians are present in all segments of society in Kuwait and are largely considered disciplined, hardworking and law-abiding.
• India has often in the past played up the role of the Indian community in Kuwait as an important factor in bilateral ties.

 

Persian Gulf Region

• The lands around the Persian Gulf are shared by eight countries namely, Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE).
• These all eight countries are members of the United Nations.
   
  • UAE, Bahrain, Saudi Arabia, Oman, Qatar, Kuwait are members of the Gulf Cooperation Council (GCC).
  • Out of the Persian Gulf countries, Iran, Iraq, Kuwait, UAE and Saudi Arabia are members of the Organization of the Petroleum Exporting Countries (OPEC).
• Being major producers of crude oil and natural gas, there is a commonality of interest among these countries.
• This commonality of interest has given rise to their own prosperity and subsequently, economic-political entanglements among them.

 

 

 

India-Kuwait Relations:

• 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.