According to the bill, passed by Kuwait's National Assembly on Monday, Indians should not make up more than 15 percent of the country's population.
This means that 800,000 of the 1.45 million Indians resident in Kuwait could be forced to leave the country once the law is implemented later this year.
Indians are Kuwait's largest expatriate community, sending home some $4.8 billion in remittances in 2018.
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Low oil prices and the coronavirus lockdown has hit Kuwait's economy hard and there has been growing pressure on the government to reduce the number of expatriates in the country and provide more jobs for Kuwaitis.
Assembly Speaker Marzouq Al-Ghanem on Sunday alleged that 1.3 million expatriates "are either illiterate or can merely read and write" and Kuwait should instead focus on recruiting skilled foreign workers, according to Kuwait Times.
The New ArabComments