Kazakhstan should offer investment opportunities for Indian business

According to him, the Government of Kazakhstan had prepared an appeal to the Head of the State to lift the moratorium on use of mineral resources in relation to investors, which are ready to take active part in the industrialization program.

The economy of Kazakhstan's top priority remains the diversification and development of the extractive industry sector. According to the Strategic Plan, the share of manufacturing in GDP will amount not less than 12,5% by 2015, not less than 13% by 2020, while the share of non-oil exports should rise from 10 to 40% by 2015 and 45% - by 2020. In order to achieve the goals it is expected to invest about $ 20 billion in non-extractive sectors in the next five years. Agro-processing, construction materials production, oil refining, metallurgical, chemical and pharmaceutical industry are considered as the priority sectors of development.

Kazakh government believes that one of the major post-crisis developments of the country is the restoration of a favorable business climate. In this regard, block reforms are developed to simplify business registration and accreditation, obtaining permits, licenses, certificates and improve opportunities for consultation as well.

Last year President Nazarbayev paid a highly successful and path-breaking visit to India from 23-26 January 2009 when he also participated as the Chief Guest in India's 60th Republic Day Celebrations in January 2009. A Joint Declaration was issued during the visit to upgrade the bilateral relationship to the level of Strategic Partnership. During this visit several areas were identified for providing an impetus to bilateral commercial and economic engagement. Kazakh President invited Indian companies to set up joint ventures to manufacture pharmaceutical drugs because Kazakhstan annually imports drugs and medicines worth more than US$ 800 million from other countries. He stated that in addition to the population of Kazakhstan, these products could also be supplied to neighbouring countries in Central Asia as well as in Southern Republics of Russia. India offered to set up a gas-based fertilizer plant and establish an Entrepreneurship Development Centre in Kazakhstan since India has considerable expertise in these areas.

In this connection I would like to tell our readers about the Confederation of Indian Industry (CII) which, to my opinion, should play an important role in an involvement of Indian Business circle in the Kazakhstan Program of Forced Industrial Innovative Development. CII's mission is to create and sustain an environment conducive to the growth of industry in India, partnering industry and government alike through advisory and consultative processes. Founded over 115 years ago, it is India's premier business association, with a direct membership of over 8100 organisations from the private as well as public sectors, including SMEs and MNCs, and an indirect membership of over 90,000 companies from around 400 national and regional sectoral associations.

CII works closely with government on policy issues, enhancing efficiency, competitiveness and expanding business opportunities for industry through a range of specialised services and global linkages. It also provides a platform for sectoral consensus building and networking. Major emphasis is laid on projecting a positive image of business, assisting industry to identify and execute corporate citizenship programmes. Partnerships with over 120 NGOs across the country carry forward initiatives in integrated and inclusive development, which include health, education, livelihood, diversity management, skill development and environment.

With 64 offices in India, 9 overseas in Australia, Austria, China, France, Germany, Japan, Singapore, UK, and USA, and institutional partnerships with 223 counterpart organisations in 90 countries, CII serves as a reference point for Indian industry and the international business community.

It is known, that over the past four years, the EU retains leadership among trade and investment partners of Kazakhstan, leaving behind Russia and China. Over 40% of the total foreign trade turnover of Kazakhstan accounted to the EU. From 1993 to September 2009 foreign direct investments of $ 102,9 billion have been attracted to Kazakhstan's economy, the EU accounts is about 50%. Among the main investors in Kazakhstan are the Netherlands, France, Britain and Italy. The volume of Kazakh investments in the economy of EU member states from has already exceeded 10 billion U.S. dollars for the period from 1994 to July 2009.

In recent years, a net inflow of foreign investment in Kazakhstan has shown impressive dynamics, rising from $ 4.16 billion in 2004 to $ 11.7 billion - in 2009. Despite the global financial crisis, investors' interest to Kazakhstan remains high.

According to Advisor for economic and commercial issues of the Chinese Embassy in Kazakhsta the trade turnover between to countries was up to USD 17 bln 500 mln in 2008, Kazakhstan was the second world trade partner of China among the CIS states and takes the second place on the Kazakh import and third - on the export.

Last week Chairman of the Board of SamrukKazyna National Welfare Fund Kairat Kelimbetov told that the total volume of financing the state program makes USD 45 bln, 50% of which relate to the projects implemented by SamrukKazyna Fund.

According to him implementation of the five-year State Program on Forced Industrial-Innovative Development of Kazakhstan would bring the country to a brand new level of development. "We have set to implementation of 21 projects worth USD 22 bln. These are large projects which are planned to be discussed today. The point at issue is reconstruction and modernization of largest oil refineries and construction of new railroads which will connect West and East", the Chairman of the Board of SamrukKazyna noted.

Alongside, K. Kelimbetov noted that technological modernization and diversification of economy is impossible without modernization of major national companies of the country

Evidently, it should be place for India - the great world power for boosting the innovative industrial development in Kazakhstan.