With the bilateral trade between India and Kazakhstan touching more than US dollar one billion the two countries are keen on expanding their trade basket and are exploring markets for new products.
With the bilateral trade between India and Kazakhstan touching more than US dollar one billion the two countries are keen on expanding their trade basket and are exploring markets for new products. There is immense potential to be tapped in sectors like agricultural products, food processing, pharmaceuticals, energy and chemicals. The landlocked nation is India’s largest trade and investment partner in Central Asia and it is the third largest partner in the entire post-Soviet region.
Ahead of the expected visit President Nursultan Nazarbayev of Kazakhstan in June 2019 when 15 agreements are expected to be signed at government, agency as well as company levels, the two countries are expected to for deepen their cooperation in energy, logistics, information technologies, space, pharmaceuticals, tourism and film making.
Speaking to the Financial Express, Ambassador of Kazakhstan to India Bulat Sarsenbayev said that, “The two countries intend to strengthen their comprehensive cooperation and partnership with an emphasis on economic diplomacy, trade and investment interaction.”
Recently, the embassy of Kazakhstan together with Indian partners held in New Delhi two major events. The first was the round table on “The North-South Transport corridor Kazakhstan-Turkmenistan-Iran-India: the current situation and prospects.”
“The issue of the establishment of economically advantageous transport routes and wider use of the Kazakhstan-Turkmenistan-Iran and then by sea to India was discussed. And according to estimates, the use of the route will allow to increase bilateral trade by almost three times,” he added.
For India, the country is landlocked; there is a major requirement to improve connectivity with the region which would help in enhancing the trade between the two.
“We are working on a proposal for a railway network from the Chabahar Port in Iran: Iran-Turkmenistan-Kazakhstan railway network and onwards as this will help in enhancing trade in the region. The idea is to have a consortium of India-Iran-Kazakh and Russia, for laying a railway line that will carry the goods once they reach the port in Iran,” the envoy added.
This is besides the International North South Transport Corridor and Chabahar corridor, and both are going through Iran
Such a move is expected to help in easy access to the landlocked nation as well as lower tariffs and importing of critical resources from there. Kazakhstan has become the main supplier of uranium to India. During 2016-17 India imported petroleum oils & oils obtained from bituminous minerals (64.5 per cent); radioactive isotopes (18.5 per cent); asbestos (6.0 per cent), ferro alloys (3.9 per cent) and zinc (3.0 per cent).
Kazakhstan-India investment Forum took place here which aimed at increasing of Indian investments in the economy of Kazakhstan, where the two countries have set bilateral trade target to $ 5 bn.
As part of part of India’s efforts to boost strategic partnership with the resource-rich central Asian nations, during her recent visit to that country, external affairs minister Sushma Swaraj had met the country’s top leaders to discuss ways to consolidate the strategic partnership in areas like trade, energy, security and information technology.
The two countries are keen on deepening cooperation in trade and investment, defence and security, energy, Information and Communications Technology (ITC), pharma, capacity building and culture, joint film production and cinematography.
“The first step for cooperation in the field of cinematography was launched with the efforts of the two countries. In particular we are working on several projects with a famous Indian film director, producer and screenwriter Rajkumar Santoshi,” the envoy added.
Kazakhstan is importing Pharmaceuticals and medical products, coffee and tea, machinery, apparel and chemical products from India. “We are keen on buying wind turbines, agricultural machinery, Indian marble, spices, fruits and more tea,” the envoy added.
According to the envoy, “There was a mango festival organised by the Indian government in Astana. It was a huge success. There is big market. And talks are going on between the two sides to get the Indian mangoes in Kazakhstan.”
There is a Memorandum between the governments of India and Kazakhstan on cooperation in application of technical regulations and sanitary and phytosanitary measures.
Reportedly, Maharashtra State Agriculture Marketing Board (MSAMB) has decided to give out subsidies in order to promote farm export by farmers directly by sea if they export mango and pomegranate to the USA and Australia, banana and mango to South Korea, Afghanistan and Russia, mango to Kazakhstan, banana, orange and mango to Iran, onion and mango to Mauritius, and onion and other vegetables to Latvia.