India-Kazakhstan: Common heritage paves way for promising future

India-Kazakhstan: Common heritage paves way for promising future

The relationship between India and Kazakhstan goes past many centuries. Mirza Muhammad Haidar Dughlat Beg, the author of historical work, Tarikh-i-Rashidi, which describes the founding of Kazakh Khanate in 1465, lived and is buried in India. In recent years, India has made impressive socio-economic progress and contribution to global peace and stability. Relations between India and Kazakhstan have also exhibited considerable dynamism and momentum over the periods. India was one of the first countries to recognize Kazakhstan as a free, sovereign State after the break-up of the Soviet Union in 1991. President Nazarbayev chose India to be the first country outside the former Soviet block for a State visit in February, 1992 after the independence of Kazakhstan in December, 1991. This decision demonstrated the deep respect and admiration in which President Nazarbayev and the people of Kazakhstan hold India as a country endowed with a glorious past, having a vibrant present and blessed with a bright future. This visit was followed by a regular exchange of visits and meetings at the highest political level as well as at Ministerial and official levels. Both the countries relations have been growing steadily and were upgraded to the level of strategic partnership during the landmark visit of President Nazarbayev to India as the chief guest on the occasion of the 60th Republic Day of India in January 2009. Kazakhstan is India's largest trade and economic partner in Central Asia. India achieved a significant milestone in 2014 with bilateral trade crossing 1 billion dollar. The inauguration of Kazakhstan-Turkmenistan-Iran railway link is a major breakthrough in connectivity that will open new possibilities of further expansion of trade and economic ties between India and Kazakhstan. While petrochemicals and uranium are of key strategic interests to India, building momentum in other sectors is hindered mainly by lack of adequate information available in both countries about the business potential and prospects. Ashok Sajjanhar, former Ambassador of India to Kazakhstan, has mentioned that there is a huge �information divide' between the two countries and Indian businessmen and entrepreneurs are not fully aware of Kazakhstan's attractive investment climate. Language barrier is an additional cause of hesitation on the part of Indian business enterprises. According to World Bank report on global economic prospects, India's GDP crossed the 2 trillion dollar mark in 2014. India registered a real growth of 5.6 per cent in 2014, and is forecasted to grow at the rate of 6.4 per cent in 2015 and 7 per cent each in 2016 and 2017. The positive economic outlook is based on a series of economic reforms initiated by the present government coupled with a national programme, Make in India, launched in September 2014. Make in India programme is aimed to attract business from around the world to invest and manufacture in India with strong emphasis on fostering innovation, infrastructure creation, industrial development and promotion of tourism. Indian Technical and Economic Cooperation Programme, ITEC constitutes one of the fundamental pillars of India's foreign policy. Over 140 countries and ten multilateral organisations are India's partners in the programme. Harsh Kumar Jain, Ambassador of India to Kazakhstan on occasion of Republic Day of India on 26th January 2015 has said Kazakhstan is India's ITEC partner since 1992. Till January 2015, over nine hundred civilian and defence personnel from Kazakhstan have benefitted under the programme in the last 23 years. Given the current state of affairs and the high rating of Kazakhstan's FDI potential, looking beyond energy and mineral sectors in Kazakhstan is important to India for two reasons. First, in order to ensure a better stake in Kazakhstan's energy resources, a wider presence in other sectors is necessary. Expansion of business ties in sectors like banking and infrastructure will help to enhance the ease of doing business not only in Kazakhstan but also in other fast growing and resource rich countries in Central Asia. Secondly diversification being a pressing priority of the Kazakh economy, lucrative opportunities are fast emerging in a number of non-energy sectors such as agri-business, fertilizer, logistical and other business service and information technology (source: 1983-2008 25 years CUTS International). Today, Kazakhstan accounts for more than half of India's trade with the Central Asian countries and the trade has seen a rapid expansion as India is sourcing mineral fuels from the country. This landmark visit to the central Asian countries will revitalise India's ancient links with the region. It is estimated that trade with these countries can grow manifold from the small base of 1.4 billion dollar currently. India has two dozen operating nuclear units with five more, including a fast breeder, under construction. On the other hand, Kazakhstan which has the 2nd largest world's uranium reserves is positive in re-engagement with India on energy trade. Earlier, India has imported some over 8 hundred tonnes of uranium including 300 tonnes of natural uranium from Kazakh nuclear company KazAtomProm. Prime Minister's visit coincides with the drilling for oil in the Satpayev block in the North Caspian Sea, in which Indian company ONGC has 25 per cent stake. His visit would boost in kicking off the multi-modal North South Transport Corridor project which aims to connect Mumbai with St. Petersburg in Russia, while touching Iran's Bandar Abbas port. The five central Asian countries are also looking for Iran's Chabahar port to be upgraded fast by India and made operational, so that connectivity to their region could be boosted. Kazakhstan is supportive of India's permanent membership to UN Security Council. Kazakhstan also cooperates with India in the field of counter terrorism and had condemned the Mumbai attacks in 2008. India and Kazakhstan actively cooperate under the aegis of Multilateral Fora including Conference on Interaction and Confidence-Building Measu