Kazakhstan has ranked 25th in the World Bank’s Ease of Doing Business Report. The office of KAZAKH INVEST in India is ready to provide assistance, starting from an idea to the commissioning. The development and operation of INSTC will be key to increase India’s economic ties with Kazakhstan, the country’s envoy to India Nurlan Zhalgasbayev tells ET’s Dipanjan Roy Chaudhury
How would you describe current state of India-Kazakhstan partnership?
The relations between Kazakhstan and India have been developing in the spirit of friendship, partnership and are based on the cultural and historical affinity between the peoples of the two countries. Mutual cooperation raised to the strategic level in January 2009 and has been enhancing very fast. The main highlights of the cooperation are absence of any issues between Kazakhstan and India. We share similar positions on the main topics of international Agenda.
During the years after establishment diplomatic relations between Kazakhstan and India in February 1992, we have been able to achieve a lot together thanks to a mutual relationships based on mutual respect and implementation of interests.
Only this year we had two important events with participation of our leaders – virtual Voice of the Global South Summit (January 13) and SCO Summit (July 4).
Kazakhstan is the main trading partner of India in Central Asia, the bilateral turnover exceeds the total trade with the rest of the countries in the region. It should be noted that Kazakhstan is not just a beneficiary, but also an investor to the Indian economy: Indian Railway Finance Corporation IRFC (for around 20 mln$) and Export-Import Bank of India (for more than 10 mln $)”.
Kazakhstan can be a great hub for India’s investments. Kazakhstan ranked the 25th country in the World Bank’s Ease of Doing Business Report, and the country targets to enter the top 10 countries within 5 years. Given the investment opportunities of Kazakhstan’s agro-industrial complex, Kazakhstan can serve as a platform for production of agricultural products which will be delivered to neighboring countries.
Today Kazakhstan offers over 200 project packages in different areas. Almost all of them have a potential Kazakhstan partner. The investors are facilitated in which industries and regions to invest in Kazakhstan having the List of Investment Projects. The office of KAZAKH INVEST in India is ready to provide assistance, starting from an idea to the commissioning.
How would India and Kazakhstan like to cooperate in SCO format?
As you know, the Republic of Kazakhstan chairs the Shanghai Cooperation Organization from July 5, 2023 to June 2024.
The chairmanship has passed to us from India, and therefore I would like to note that Kazakhstan has supported and will continue to support the initiatives of the Indian side in the SCO.
On July 4, 2023, at the SCO Summit, the President of the Republic of Kazakhstan K.Tokayev outlined the specific priorities of the chairmanship.
In this regard, I would like to inform you that the chairmanship, Kazakhstan intends to focus the joint efforts of the Member States on the following areas:
– improvement of the SCO and its transformation into an even more effective platform;
– strengthening the capacity to ensure security and stability in the SCO space;
– deepening ties in the field of economy and trade;
– deepening cooperation in the cultural and humanitarian sphere;
– expansion of the SCO and development of its international relations.
One of the important steps towards reforming the Organization is the adoption at the SCO Summit in June 2024 in Kazakhstan of the SCO Development Strategy until 2035 and the Concept of Improving the SCO’s activities. The documents are aimed at deepening practical cooperation, including the algorithm of progressive reform of the SCO.
Issues of regional security and mutual trust are among the main topics on the Organization’s agenda. Taking into account the current trends in world politics and economy, Kazakhstan proposes to update the SCO’s approaches to modern challenges and threats.
In this aspect, Kazakhstan proposes to jointly promote the SCO common Initiative “on world unity for just peace and harmony”. The comprehensive document contains principles for strengthening confidence-building measures, maintaining stability and security in the region.
Great importance will be given to the formation of an updated Program of cooperation of the SCO member states on countering terrorism, separatism and extremism for 2025-2027.
It is necessary to adopt an updated Anti-Drug Strategy and an Action Program for its implementation. In practical terms, it is proposed to continue the practice of holding SCO international actions “For a World without Drugs” and Operation “Web” with the involvement of observer states and SCO dialogue partners.
The cultural and humanitarian dimension is one of the most dynamically developing areas of interaction within the SCO.
Much attention will be paid to the implementation of the SCO Spiritual Shrines project and the organization of the SCO International Scientific and Practical Conference on: “The Golden Horde and its Legacy” in Turkestan with the participation of leading experts, scientists of the member states.
In order to effectively combat climate change, improve food security, water supply, and biodiversity conservation, 2024 was declared the Year of Ecology on the initiative of Kazakhstan.
It is expected to adopt an intergovernmental agreement on cooperation in the field of environmental protection, a program of cooperation in the development of specially protected natural areas and eco-tourism, a Memorandum of understanding between the SCO Secretariat and UNEP.
For the entire period of its chairmanship, the city of Almaty has been declared the tourist and cultural capital of the SCO. A plan of relevant events has been developed and adopted with the participation of well-known figures of culture and art, sports and science of the SCO member states.
Work will continue on further deepening and expanding the SCO’s international relations with multilateral structures, observers and SCO dialogue partners.
Kazakhstan, as Chairman of the SCO, will make every effort to modernize the Organization and further transform it into a more effective multilateral platform in order to further strengthen mutually beneficial cooperation and traditional ties of friendship between the SCO member states.
What are the plans to expand India-Kazakhstan defence partnership?
The capabilities of our countries have great potential for further enhancing cooperation in the Military and Military-Technical spheres. In this context, the defense agencies will continue cooperation through: Mutual participation at exhibitions of arms and military equipment; Conducting bilateral military exercises; Holding meetings of the India-Kazakhstan Joint Working Group on Military-Technical cooperation; Joint peacekeeping activities; Exchange of faculty members of military educational institutions & Training of military personnel of the two countries.
As part of military diplomacy and to strengthen the growing strategic relation with Kazakhstan, the 6th Edition of Indo – Kazakhstan joint training exercise «KAZIND-22» were held at Umroi (Meghalaya) from 15 to 28 December 2022.
Joint annual training exercise with the Kazakhstan Army was instituted in 2016 as Exercise Prabal Dostyk, which was later upgraded to a company level exercise and renamed as Ex Kazind in 2018.
The purpose of such exercises is to build positive military relations, imbibe each other’s best practices and promote the ability to operate together while undertaking counter terrorist operations in semi urban / jungle scenario, under a UN peace enforcement mandate.
For my part, I am confident that the KAZIND Exercises will increase the level of defense cooperation between the Indian army and the army of Kazakhstan, which will further strengthen bilateral relations between the two countries.
How do you describe current India-Kazakhstan economic partnership?
I would like to especially note the positive dynamics of the development of the economic relations between our countries. As you all know, Kazakhstan is India’s main trade economic partner in Central Asia. I am pleased to note that in 2022 trade turnover between Kazakhstan and India reached 2,4 billion USD, which is 16.67% higher than in the previous year.
Exports from Kazakhstan during this period amounted to 1.9 billion USD (+13.97%), imports from India – 500 million USD (+32.91%). This volume exceeds the total turnover with all other countries of the region. And there is a huge potential to develop our trade cooperation in such areas as pharmaceuticals, energy, information technology, investment, space, etc.
It is necessary to conduct an in-depth analysis of export opportunities, diversify the structure of trade as soon as possible and develop a Roadmap to increase trade flows, considering the competitive advantages of each country. This initiative was proposed during the Central Asia-India Summit.
Our task is to create conditions for the development of small and medium-sized businesses on the way to deepening trade, economic, cultural, and tourist ties.
In accordance with the agreements reached (January 27, 2022 in an online format) by the Heads of our States, within the framework of the first Summit of Heads of State (Central Asia – India), we are actively working to establish transit and transport links and pay special attention to the development of the transit potential of the country.
In the context of modern geopolitical conditions and disruption of logistics supply chains, the international North-South transport corridor, especially Chabahar Port are becoming increasingly relevant.
Further development of regional connectivity is essential for enhancing trade and commerce between India and Central Asian countries in the context of our land-locked nature and lack of overland connectivity with India.
The development and operation of INSTC will also benefit India’s private sector. As Asia is currently projected to be home to 66% of the world’s middle class with significant purchasing power, it is expected that entry into new markets, which will be provided by INSTC routes, will benefit private players in India.
Indian firms engaged in the production of agricultural commodities, textiles, organic chemicals, etc., can benefit greatly from this progress. Not only manufacturers, but also cost savings due to a shorter route can reduce the cost of transporting products and make them more competitive in the market, which ultimately also reduces costs for retailers and consumers.
Since its independence Kazakhstan attracted around 400 billion USD of foreign direct investments. As for the Indian investments to Kazakhstan the overall volume from 2005 till now counts for more than $400 million and I’ am confident that with a mutual efforts and energy of our existing and potential Indian partners we can do more.
According to the World Bank Doing Business report, in 2022 Kazakhstan ranked 25th place, which is a great recognition for us in terms of the government’s transformation agenda on ease of doing business and improvement of business climate.
Kazakhstan has created all the conditions for foreign investors in terms of favorable investment climate and ease of doing business. For instance, since 1998, the Council of Foreign Investors under the chairmanship of the President of the Republic of Kazakhstan is operating in the country – and its worth mentioning that members of the council are President of EBRD, Executive Vice-president of Chevron, General Director of Citi Group, as well as leadership of such international companies as Royal Dutch Shell, ENI, Glencore, KNAUF, JP Morgan, TOTAL, Mitsubishi, Deutsche Bank and others. Investment ombudsmen function is performed by the Prime Minister of Kazakhstan.
In terms of investment attraction and investors support, a Kazakh Invest National Company – operates there as a single negotiator on behalf of the government, under the Investment Committee of the Ministry of Foreign Affairs, and provides support to investors on the “single-window” basis. Representative office of Kazakh Invest in India is operating in the Embassy of Kazakhstan in New Delhi.
Regarding investment incentives, there is a wide range of various benefits available for investors, such as tax exemptions, import duty exemption, land plots provision, state in kind grants, investment subsidies and many other state support measures.
In 2021, a new tool to support strategic investors has been created in Kazakhstan – a Strategic Investment Agreement for the projects above $50 million. A mechanism allows investors to conclude agreement with the government directly without additional ratification with a parliament, and grants a legislation stability in terms of tax and labor codes at least for a period of 25 years.
In terms of availability of the infrastructure, there are 13 Special Economic Zones and 36 Industrial Zones currently available in Kazakhstan.
In April of this year, Investment Committee of the Ministry of Foreign Affairs published publicly pool of investment projects of non-resource sector primarily that are under implementation that counts more than 750 project with a gross value of more than 5,3 billion USD.
On top of that, an investment project Catalogue, that was formalized by Deloitte Kazakhstan office, is available on the Kazakh Invest website, with more than 200 active business opportunities open for investment cooperation. So, I encourage all the guest and Indian business to go through the project catalogues.
Given that, in terms of Kazakhstani – Indian investment cooperation a following sector are of priority and high potential: food-processing, pharmaceuticals and medical devices, medicine equipment, engineering machinery, IT and ICT, electronics, healthcare, green & renewable energy, transport and logistics infrastructure and tourism infrastructure.
Kazakhstan has overcome many difficulties and reached great heights in its 30-year history. What changes are taking place in the country today?
The journey of any great nation includes several key milestones which collectively influence its national identity. Beyond establishing independence, the adoption of a constitution forms the most important basis of a country’s political system and processes, as it outlines the very principles responsible for guiding the nation’s future path.
On 30 August, Kazakhstan will celebrate Constitution Day. Underpinned by the unalienable values of freedom granted to each and every citizen, the Constitution has proven central to the accomplishments of our country and provided us with the guide for development and prosperity which we enjoy today.
This year, Constitution Day holds particular importance, as it is celebrated for the first time after the amendments to the constitution, which were approved following a nationwide referendum in June last year, have come into force. These reforms have transformed Kazakhstan and have ushered in new democratic principles in our country. More powers and influence have been granted to parliament and the local government, while presidential powers have been limited, which means the government is now more accountable to the people who elected the parliament. In addition, in line with the updated Constitution, the President of Kazakhstan is now elected for only a single seven-year term, without the right to re-election, which is completely unique for our region.
Kazakhstan has established and further strengthened mechanisms that protect human rights and democracy by enhancing the role and status of the Ombudsperson for Human Rights, the Ombudsperson for children’s rights, and the Ombudsperson for protecting people with disabilities.
We have also reestablished the Constitutional Court, which ensures further protection of human rights and freedoms. Kazakhstan’s citizens, including the Prosecutor General and the Ombudsperson, can now directly apply to the Constitutional Court to declare unlawful norms that, in their view, contradict the principles of the Constitution.
The impact of the constitutional amendments was particularly visible during the parliamentary and local elections that were held in March this year. Simplifying the process for registering political parties resulted in new parties that took part in the elections, including Respublica and Baytaq. These elections are considered by many domestic and international political experts to have been the most competitive in Kazakhstan’s modern history. In line with the constitutional changes, which also include direct election of rural mayors, a proportional-majoritarian model was used in the parliamentary election for the first time since 2004. This enabled numerous self-nominated candidates to participate in single-mandate districts along with party candidates. As a result, opportunities for citizens’ participation in the political life of the country have significantly expanded. Six parties managed to pass the five percent threshold needed to get into parliament, which has created a truly multi-party representative body with different political views.
As Kazakhstan commemorates its Constitution, we must also celebrate the citizens of our country, who have embodied its fundamental values and showed their support through the referendum for the constitutional reform last year, which enabled to further enshrine the ideals of freedom, equality and concord into the fabric of our society. It should be noted that five electoral campaigns have taken place in Kazakhstan in approximately one year, including a referendum, which means Kazakhstan’s citizens have had a direct say on all the changes.
Ultimately, thanks to the constitutional amendments and reforms, a new civic and political culture has taken shape in Kazakhstan’s society. Of course, our path to overhaul the existing system in our country is far from over. Transformations and reforms, including social and economic, are a constant work in progress to ensure that the country keeps up with global changes, trends, and challenges that continuously spring up.
At the time of our Constitution’s initial signing in 1995, we were a young nation facing the many challenges encountered by newly independent countries all over the world. Looking to forge our own national identity, our Constitution codified the values that we hold dear and outlined the principles that laid the foundation for our stability and achievements. Today, following the implementation of the constitutional amendments, which affected a third of the articles of the Constitution, Kazakhstan is essentially a new nation even in comparison to just a few years ago.
In ensuring the freedoms of speech, assembly and religion, as well as political diversity and personal liberty, the Constitution has provided a blueprint for our country’s social, economic and political development. Our tolerant society, where every citizen – regardless of their creed – can feel valued and free, as well as our wider domestic prosperity, is a testament to the forward-thinking nature of our Constitution as a guide to success, unbound by time or historic context.
