Since February, 23, 1992 when diplomatic relations between India and Kazakhstan were established, close cooperation in many fields have been proceeding. Since January, 24, 2009 our relations have been characterized by the level of strategic partnership. Taking into account the global processes occuring in the modern world, the special attention should be paid on bilateral cooperation and economic interaction. Economy is a key to development of international relations.
Kazakhstan is rich in mineral resources; it is the largest trading partner of India in the Central Asia. The most perspective spheres of bilateral cooperation are the power, manufacturing sector, metallurgy, agriculture, petrochemistry, pharmaceutics, IT-technologies, tourism, science, technical and military — technical cooperation, bank sector and other spheres of economy. Our country is interested in expansion of the Indian business presence in the economy of Kazakhstan. First of all, it concerns the branch of high technologies.
Our Government is aimed to diversify cooperation in energy sphere. The deepening interaction with India carries huge potential in this area; it is perceived mutually advantageous. The Republic of Kazakhstan adheres to a multivector policy. Today its basic directions include cooperation with Russia, the USA, the EU and the PRC. We welcome, promote and hope, India became the fifth vector in our policy. With respect to strong regional leader status of India, and also its growing global influence, activity on this direction is the wise decision.
On the Kazakhstan’s territory there are deposits of 99 elements of the Periodic table. It opens a huge field for cooperation in a raw sector. Taking into account, that bilateral trade between Kazakhstan and China compounds 25 billion dollars (predicting growth up to 40 billion dollars by 2015), on this background 600 million dollars trade level between India and Kazakhstan is inadequate and modest.
India is one of the largest importers of power resources, in view of growing economy, internal demand for energy carriers in India will grow. According to nongovernmental sources, up to 50% of Kazakhstan’s oil-and-gas sector belongs to Chinese companies in this respect, purchasing by ONGC Videsh Limited 25% share in project «Satpayev» has got significant support in Kazakhstan. Moreover, ONGC Videsh Limited has expressed desire to acquire share of ConocoPhilips (8,4%) in the largest project «Kashagan».
The similar situation is observed in the sphere of nuclear power. Kazakhstan is the second richest state in the world on uranium explored reserves. But almost all export of this resource flows in China, providing growth of its nuclear power industry. India plans to increase fivefold energy production by nuclear power plants (NPPs), achievement of this aim needs nuclear fuel. India requires up to 8 thousand tons of uranium annually, according to expert forecast, demand of the country for nuclear fuel will increase tenfold by 2020. Thus, obligation of Kazakhstan to supply two thousand tons of uranium to India till 2014 within the framework of the Agreement on cooperation in the sphere of peaceful use of nuclear energy possessing great importance for both sides. But, it is obvious that the potential of cooperation in the field of nuclear power is not fully realized. In fact, deliveries of a uranium concentrate from Kazakhstan to China compound more than 25 thousand tons. Considering, that Kazakhstan plans to build nuclear power plant, cooperation with India in this area possesses great prospects.
Bilateral cooperation in financial sphere is also conducted. For example, Punjab National Bank has a control share holding Kazakhstan «Danabank». The competition in bank sector always was the positive factor for economic development. Expansion of Punjab National Bank’s activity on the Kazakhstan financial market would have mutual advantage for both parties.
The joint space exploration is another potential direction for cooperation. In 2004 our Government initiated the program of space exploration; it is known that Indian space program is strong enough and able to give Kazakhstan necessary knowledge and technologies. Recently India became one of the most promising global leaders in the field of the space industry where three powers (the USA, Russia and China) appreciably lead.
Cooperation in pharmaceutics sphere also represents the great interest for Kazakhstan. India is the second largest manufacturer of medicines, and Kazakhstan imports medicines for the amount over half billion dollars. The joint venture is already functioning in the south of Kazakhstan.
IT-technologies are the most actual branch of cooperation. Indian companies such as 3i-Infotech, Tata Consultancy Services, NIIT, Larsen and Toubro, Punj LLoyd are represented in Kazakhstan. The Memorandum of mutual understanding between the Indian and Kazakhstan groups of rapid response to infringement of computer security was signed to establish cooperation in the field of cyber-security. India is the world leading developer of computer programs; Kazakhstan needs technological know-how for creation of innovative economy.
Furthermore, it is necessary to pay attention to multilateral cooperation within the framework of such international platforms as the SCO (Shanghai Cooperation Organisation), the CICA (Conference on Interaction and Confidence-Building Measures in Asia). Astana also appreciates support of India in the accession of our Republic to the WTO (World Trade Organisation). Membership of Kazakhstan in the Customs Union opens attractive prospects for transit of Indian goods. The transit potential of our state which is located in the center of Eurasia, could open new markets for Indian business. Considering the aforesaid, we underline the necessity of the transport corridor project «North — South» development.
Thus, priority directions in our relations should become:
There are some obstacles on a way of bilateral trade and economic relations’ intensification.
So, what have we undertake first of all to intensify economic cooperation between our countries?
Relations between India and Kazakhstan have a steady trend for further strengthening and expansion. India is an important participant in the implementation of such significant initiatives of N. Nazarbayev, as the CICA and the Congress of Leaders of World and Traditional Religions. But, economic relations should be a basis of bilateral cooperation. Kazak-Indian Business Council has already been operating for nearly 19 years making efforts in this direction. Kazakhstan regularly hosts Kazakhstan-India business forums, exhibitions, fairs, etc. Mittal Steel Temirtau is an example of successful economic cooperation between our countries; the company has been operating in Kazakhstan since mid-1996.
Our governments signed the Joint Plan of action on development of strategic partnership «Road map». We hope that its implementation will intensify cooperation between our countries.
Master of Humanitarian Sciences
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