State-owned Nuclear Power Corporation and Kazakh national atomic firm Kazatomprom are working on a uranium supply deal, which may eventually see India?s sole N-power firm setting up its first overseas plant in Central Asia?s fastest-growing economy.
A team of Kazatomprom executives is coming to India for advanced negotiations. The two sides will try and sew up talks so that a deal may be signed when the Kazakh president Nursultan Nazarbayev visits India as the Republic Day chief guest. The talks will first focus on getting nuclear supplies from Kazakhstan and could later move to setting up reactors in joint ventures.
India will also support Kazakhstan for its accession to the global trade body WTO. One of the reasons for it is that Kazakhstan has got world?s second largest uranium deposits, with 15% of global reserves, after Australia, and will be the top nuclear exporter by 2010. Indo-Kazakh trade ties are headed for a major boost during the Kazakh president?s visit. Kazakhstan?s deputy minister for trade and industries, Zhanar S Aitzhanova, said her country was keen to improve trade ties with India not only in the energy sector but also in services, IT and the textile industry.
Aitzhanova said that both the countries are expected to sign a host of trade agreements including the one on ?protection of intellectual property rights and geographical indications for Indian products like basmati rice, alphonso mangoes and darjeeling tea?. She also said that her country was looking for cooperation in areas of financial and other services sectors with India.
The visiting minister, who is also the chief negotiator for Kazakhstan?s WTO membership, said her country was seeking India?s support for the country?s access to the global trade body.
?We have completed WTO-related talks with 22 countries and are still in negotiations with India, the US, the EU and Saudi Arabia,? she said.
Aitzhanova said economic policies of the country?which has its annual GDP pegged around $135 billion?were being reformed as per WTO guidelines. Kazakhstan, she said, has attracted foreign direct investment of $72 billion, thanks to the country?s ?open economic policies?.
Bilateral trade between India and Kazakhstan in the first ten months of last year touched the $232 million mark?an increase of over 300% from $80 million in 2004. Of this, the minister said, oil and allied exports to India have contributed $100 million, building material like asbestos $15 million and metal exports $20 million.
India and Kazakhstan will sign two agreements, including one on intellectual property rights. The two sides concluded negotiations for the IPR and a pact on safety standards during Aitzhanova?s visit. Under the standards agreement, the two sides will accept safety standards issued by the two countries for pharmaceuticals and processed food.
?Our country has set up IT parks based on those in Bangalore. We would like Indian companies to provide computer and IT-related services…. They can provide the services online or through establishing commercial presence there,? she said.
She also added that Kazakhstan was looking at selling processed meat and dairy products to India.India can have similar trade agreements with other Baltic states as well, because the agreement with Kazakstan will boost the trade with the rest of the neighbouring CIS countries too.
The writer is a trade professor at Icfai Business School, Chandigarh. He can be contacted at vasu022@gmail.com
