New Delhi: Government of Kazakhstan is keen on the North–South Economic Corridor through Iran and is in discussion with its Indian counterpart, according to Kairat Umarov, Ambassador, Embassy of the Republic of Kazakhstan, who was addressing a meeting on ‘Doing Business with Kazakhstan’ organized by CII.
North –South Economic Corridor through Iran will enhance trade relation of India with Central Asia. Kazakhstan is a market-oriented state and has the highest investment rating in Central Asia from World Bank. It offers free flow of direct investment and 100% currency convertibility and has plans to develop Central Asia into a business-friendly region and to promote energy connectivity among countries in Central Asia to provide energy security.
Predictability, stability and tolerance allow ample opportunity for the two countries to work together in science, technology and military cooperation. Government of Kazakhstan has formed industrial clusters in tourism, energy, construction and other prominent business sectors and is keen to enter into collaborative arrangements with countries in power sector projects to focus on hydro and atomic power.
More than 60 countries are working in Kazakhstan and are satisfied with the business environment the country offers. The Ambassador hopes that the existing bi-lateral trade of $210 million in 2006 will increase favourably by initiatives from governments of both countries.
Extreme temperature, mobilization issues, availability of local skilled manpower, language barriers and unavailability of a single window system for the investor are key challenges for business growth in Kazakhstan. But with the recent implementation of important structural reforms aimed at transforming its economy into a more transparent, less regulated and more market driven economy, business and trade scenario can be changed.
Indian companies should focus on customer integration, safety, quality control and tie-ups with local partners to utilize available business potential in Kazakhstan. Construction management, health and environment could be high growth areas.