I am afraid you'll somehow have to get KU involved again and give you some sort of confirmation that they will tag your bags to FRA directly. You cannot enter Kuwait now as Kuwait issues tourist visas only to select nationalities and India is not one of them. Only other way for an Indian citizen to get a visa is to be a GCC resident and hold a certain designation, which you are not. There's virtually no way for you to enter Kuwait unless you find a loophole.

But KU T4 does have a sterile transfer area, if that's what you are asking. If you manage to find an exemption to get through and collect your bags at KWI, then yes, you can collect your baggages, simply turn left and continue walking in the common lobby towards the other side of the terminal and that's where the check-in desks are.