Wednesday, 28 January 2009Kazakhstan is surrounded with state-empires, in which third of the world population lives. It is clear that the talk is about its nearest neighbor China and another rapidly developing country India, which are like real hegemonies are more typical to struggle for spheres of influence in the region as well as for its markets.
India makes way to other players
India with its range of production and volume of manufacture strives to be equal with Russia and China in external political activity with Kazakhstan. However, it hadn't yet managed. According to results of 2008 India didn't enter even in the top 10 countries partners of Kazakhstan on the trade level: for the period fromm January to September 2008, Russia with trade turnover of USD15,5 billion is rated the first, China with USD8,7 billion - forth, letting Italy and Switzerland be ahead 2008. Whereas the trade turnover of India and Kazakhstan for 11 months of 2008 reached USD332,4 million (Kazakhstani export - USD149,7 million and import from India - USD182,7million).On the results of 2007 trade turnover between Kazakhstan and India made up USD195,7 million (Kazakhstani export - USD48,1 million, import - USD147,6 million).
Although figures say of growing dynamics Ğ°of trade turnover, countries didn't still realize their potential in full.
Mutual relations
The president of Kazakhstan, Nursultan Nazarbayev, paid an official visit to India on January 23 - 26. In the frameworks of the visit, the head of Kazakhstan held negotiations with Pratibha Devisingh Patil, the president of India, and Shri Pranab Mukherjee, the minister of foreign affairs of India. During negotiations, the sides discussed the prospects of economic, social and cultural cooperation between the states. In the frameworks of the meeting, the sides signed joint declaration, protocol on Kazakhstan entry into WTO, agreement on cooperation principles between "Kazmunaygas" national company and ONGC Mittal Energy Ltd., the memorandum of understanding between "Kazatomprom" and Nuclear Power Corporation of India Ltd. Currently these two national companies are considering the opportunities of Kazakhstani uranium delivery to India.
Nursultan Nazarbayev marked, that the negotiations and signed documents bring Kazakhstani-Indian relations to a new level of strategic partnership. Besides that, Kazakhstani president took part in business-forum, which united leading Kazakhstani and Indian business figures. Kazakhstani leader applied to the leaders of Indian business calling to make investments into Kazakhstan. Along with this, he marked, that Kazakhstan has some concrete proposals and projects on possible joint implementation.
The sides also concerned the issue of terrorism. The head of Kazakhstan blamed terrorist acts in Mumbai and stated about necessity of global cooperation establishment directed on struggle with international terrorism. He also marked, that Kazakhstan supports the efforts of India on terrorism counteraction. Both sides stated about necessity of soonest signing of universal convention on struggle with international terrorism in the frameworks of the United Nations.
Along with this, the sides marked, that the volume of mutual trade turnover is much lower the existing potentials. Due to this, Kazakhstani and Indian leaders ordered the governments to concentrate further work on this issue and define the types of goods and projects able to deepen economic interaction. At the same time, aiming to expand economic cooperation in the spheres, where India has rich experience, Indian side offered Kazakhstani authorities to establish a plant on fertilizers manufacture based on gas.
During the visit to India, Nursultan Nazarbayev presented Indian audience two of his books titled as "Critical decade" and "Kazakhstani way", which have been translated into Hindi language. Besides that, Indian side welcomed Kazakhstani leader at the celebration of Indian day in New Delhi.
Addressing the captains of industry, N. Nazarbayev said Kazakhstan imported nearly $500 million worth of pharmaceutical requirements every year and it wanted Indian companies to set up facilities in this area. In addition, he said, investments were being solicited in sectors such as banking and financial, IT, metallurgy and related areas.
"India and Kazakhstan have formed strategic partnership for setting up of joint projects in many areas such as construction, oil and gas, minerals, metallurgy as also supply of uranium. My visit to India would result into establishment of long-term relationship in areas identified above," he added.
He said oil and gas was the highly prospective area for collaboration between the two countries as his country had oil reserves for 50 years and gas reserves for 75 years.
Despite authorities' dissatisfaction with small volume of commodity circulation between the states, the figures have been growing over the last several years. According to the results of 2007 the commodity circulation between the states reached $195.7 million, up to $48.1 million went to Kazakhstani export and $147.6 million was the share of Indian import. In 1 months of last year, the trade turnover between Kazakhstan and India reached $332.4 million, up to $149.7 million was the share of Kazakhstani export and $182.7 million was Indian import. As for today, the total volume of Kazakhstani investments to India reached $63.3 million, while India has invested $61.9 milllion into Kazakhstani economy. Today, such Indian companies as Punj Lloyd, OVL, Punjab National Bank and Mittal Steel work in Kazakhstan.
The act that Indian Nationalized Punjab National Bank (PNB) opened its representative office on the CIS territory in 1998, particularly in Kazakhstan, proves, that our republic is the most attractive and promising financial market with opportunity to earn good money. More so, according to the latest difficulties of the global credit system, according to Nalind Saxena, chief representative of PNB, there are even more opportunities for acquisition of local banks. At the moment the negotiations are started on purchase of control share package in one of three Kazakshtani medium banks or banks with not big assets. The names of the banks are still kept secret. For this goal in July 2008 senior officer of PNB came to Kazakhstan, which is a bank number one among nationalized with turnover USD75 billion.
Despite, it was the 4th official visit of Kazakhstani president to India, the first visit was paid in 1992, when the companies established economic cooperation links, according to Indian businessmen, there are still many bureaucratic barriers, which prevent making business for Indian representatives in Kazakhstan.
By Olesya Ivanova
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Wednesday, 28 January 2009
Gazeta.kz
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