India-Kazakhstan relations

Category: International Relations

India-Kazakhstan relations

Historical Context

India officially recognized Kazakhstan's independence following the dissolution of the Soviet Union in 1992, a significant event marking a shift in global geopolitics. Despite India being a close ally of the Soviets during the Cold War, the recognition of Kazakhstan symbolized India's commitment to fostering relationships with newly independent states in Central Asia. This geopolitical landscape has evolved, prompting India to reevaluate its foreign policy, especially in light of its growing concerns over China's expanding economic and strategic influence in the region.

Strengthening Bilateral Relations

In recent years, India has been increasingly focused on enhancing its commercial and strategic connections with Kazakhstan, recognizing it as a pivotal player within Central Asia. Kazakhstan, known for its vast natural resources, including significant oil, natural gas, and mineral reserves, presents a myriad of opportunities for Indian investments and trade partnerships. The extensive territory of Kazakhstan not only plays a vital role in regional economics but also serves as a critical link in India's aspirations to connect with other Central Asian states, thus facilitating larger economic and strategic ambitions.

High-Level Visits and Engagement

An important milestone in India-Kazakhstan relations occurred in 2002, when then-President Nursultan Nazarbayev made an official visit to India. This visit was a crucial step in formalizing the partnership and opening new avenues for cooperation across various sectors, including defense, technology, and energy. Additionally, the same year marked the attendance of Indian Prime Minister Atal Bihari Vajpayee at the summit of the Conference on Interaction and Confidence-Building Measures in Asia held in Almaty, Kazakhstan's former capital. This gathering underscored the importance of regional collaboration and set the stage for enhanced diplomatic engagement.

Continued Collaboration

The relationship between India and Kazakhstan has continued to grow, with both countries seeking mutual benefits. Initiatives such as joint ventures and collaborative projects in energy and infrastructure have become focal points for the partnership. The two nations are also involved in multilateral organizations such as the Shanghai Cooperation Organization (SCO), where they work together on issues of security and economic development, reflecting their commitment to stability in Central Asia and beyond.

In summary, the historical recognition of Kazakhstan's independence laid the foundation for a comprehensive and evolving relationship between India and Kazakhstan. With each passing year, both nations are increasingly aware of the strategic implications of their partnership and are actively pursuing avenues for enhancing their collaboration amidst the complexities of regional politics and economic interests.

Development of Bilateral Relations

The development of India-Kazakhstan relations has seen significant advancements since the early 2000s. As of 2003, trade between India and Kazakhstan was recorded at approximately $78.9 million. In a bid to enhance commercial exchanges, both countries established the Indo-Kazakh Joint Business Council, aimed at facilitating collaboration and promoting opportunities for businesses in both nations. Despite some setbacks, such as India's unsuccessful attempt to secure equity in the Kurmangazy oil field, the Oil and Natural Gas Corporation of India (ONGC) is making strides by aiming to acquire a stake in the Satpayev field. The Kazakh national oil company, KazmunayGaz, provided ONGC with options between the Satpayev and Makhambet fields, as well as extending an invitation for Indian participation in petrochemical projects in the Atirau and Akhtau regions, marking an important step towards deepening energy cooperation between the two countries.

In addition to energy sector collaborations, India and Kazakhstan are exploring and establishing partnerships across a range of sectors, including information technology, space research, and banking. Both nations have made significant commitments to bolster these areas of cooperation, with India offering Kazakhstan loans amounting to $1 billion. In reciprocation, Kazakhstan has provided substantial tax incentives to Indian companies seeking to invest in the region. Furthermore, Kazakhstan has initiated discussions for a multilateral agreement involving Iran and Turkmenistan to create a reliable transport corridor facilitating trade with India. This corridor would not only ensure an uninterrupted trade route but also grant Kazakhstan access to India's warm water ports, significantly enhancing commercial and shipping operations for the Central Asian nation.

India's growing focus on developing its civilian nuclear energy sector as a clean energy alternative has also been pivotal in strengthening ties with Kazakhstan, which possesses vast reserves of uranium, a critical resource for nuclear power generation. The two countries’ relationship was further solidified in January 2009 when India extended a formal invitation to the President of Kazakhstan to attend its Republic Day celebrations in New Delhi, symbolizing the importance of this bilateral relationship. This event showcased India’s commitment to fostering strong diplomatic ties and cooperative endeavors with Kazakhstan, ultimately paving the way for a more robust and multifaceted partnership in the future.

Trade Balance

The trade relationship between India and Kazakhstan has been evolving significantly, characterized by a diverse range of exports and imports. India exports a variety of products to Kazakhstan, including pharmaceuticals, medical products, tea, telephone apparatus, raw tobacco, and construction machinery. These exports underscore India's robust manufacturing capabilities and its strategic focus on enhancing bilateral trade ties through the supply of essential goods and technological support.

Conversely, India imports several key commodities from Kazakhstan that cater to its energy and industrial needs. The major exports from Kazakhstan to India include petroleum oils, which form a critical part of India's energy resources, and oils from bituminous minerals that are essential in various industrial applications. Additionally, Kazakhstan supplies important radioactive chemical elements and valuable resources such as asbestos and titanium, which are crucial for sectors like construction and aerospace.

A notable aspect of the trade relationship is Kazakhstan's position as the largest supplier of uranium to India. Between 2015 and 2019, Kazakhstan provided approximately 5,000 tonnes of uranium, a vital resource for India's nuclear energy program. This partnership, particularly in the field of nuclear energy, highlights the deep trust and cooperation between the two nations in addressing energy security and fostering sustainable development. Overall, the burgeoning trade balance reflects not only economic interdependence but also the strategic collaboration in key sectors that can further enhance bilateral ties in the future.

COVID-19 Response and Cooperation

In the face of the global pandemic, the relationship between India and Kazakhstan was notably characterized by solidarity and support. During the devastating surge of COVID-19 cases in India in May 2021, Kazakhstan stepped forward to provide essential medical assistance. This included the shipment of significant quantities of medical equipment and protective gear. Such efforts underscored the spirit of cooperation and the strengthening of bilateral ties in the health sector as both nations navigated the challenges posed by the pandemic.

Kazakhstan's gesture was not merely a one-time event; it highlighted a broader commitment to international collaboration in times of crisis. The medical supplies included items crucial for frontline healthcare workers in India, ensuring that they were equipped to manage the rising number of patients. This act of goodwill went beyond the provision of equipment; it fostered a sense of unity between the two countries and showcased Kazakhstan's leadership role in promoting regional stability and health security.

Moreover, the COVID-19 response from Kazakhstan aligns with the global trend of countries supporting one another amidst health crises. It is part of a larger narrative where nations recognize that global health is interconnected, and collaborative efforts are essential for navigating such unprecedented challenges. This cooperation also led to discussions about enhancing healthcare partnerships and exploring opportunities for joint research in areas such as vaccine development and pandemic preparedness in the future. The experience shared between India and Kazakhstan during the pandemic lays a strong foundation for ongoing cooperation in health and other sectors, indicating a commitment to mutual support and understanding in years to come.

Strategic Cooperation between India and Kazakhstan

India and Kazakhstan have forged a robust strategic partnership, particularly in the realm of security, as both nations share a common interest in combating religious terrorism and extremism. This collaboration has transcended mere rhetoric, translating into tangible initiatives aimed at enhancing regional stability. The signing of a joint memorandum in December 2002 marked a significant milestone in their defense ties, laying the groundwork for various projects that include the training of military officers and the development of joint military-industrial ventures. These efforts highlight India and Kazakhstan's commitment to fostering a defense relationship that not only enhances their military capabilities but also aligns their strategic interests.

One of the notable aspects of this partnership is India's support in Kazakhstan’s efforts to establish a naval fleet in the Caspian Sea. This endeavor, while met with some resistance from Kazakhstan's northern neighbor, Russia, underscores India's growing influence and its willingness to engage in regional maritime issues. The collaboration in naval development serves to strengthen Kazakhstan's defense infrastructure while allowing India to cement its position as a key player in Central Asian geopolitics. Furthermore, this partnership extends beyond conventional military domains; it encompasses broader security concerns that are pivotal in today's volatile global landscape.

The diplomatic engagements between the two nations have also been significant, with high-level visits showcasing their mutual commitment to cooperation. A landmark visit by Kazakhstan President Nursultan Nazarbayev to India in January 2009 resulted in a civil nuclear cooperation pact, allowing Kazakhstan to supply uranium to India’s atomic energy program. This agreement not only marks a crucial step in India's quest for energy security but also reflects Kazakhstan's role as a major player in the global uranium market. Such accords invigorate the economic ties between the countries, further solidifying their strategic cooperation.

The defense partnership has been further exemplified through collaborative military exercises, such as the Prabal Dostyk exercises held in Kazakhstan in 2016 and in Himachal Pradesh in 2017. These joint drills are designed to enhance interoperability, foster mutual understanding, and build trust between the armed forces of both nations. By engaging in these military exercises, India and Kazakhstan seek to strengthen their readiness against common threats while also contributing to peacekeeping and stability in the region. Overall, the strategic cooperation between India and Kazakhstan reflects a dynamic and evolving relationship, one that holds promise for future collaboration in various fields, including defense, security, and energy.

Kazakhstan and TAPI

India has proposed a significant hydrocarbon pipeline in collaboration with Kazakhstan, which aims to transport fuel through a multi-nation route involving five countries. This idea was first articulated during a meeting between India's External Affairs Minister Salman Khurshid and his Kazakh counterpart Erlan Idrissov. The prospect of establishing such a pipeline demonstrates a mutual interest in enhancing energy cooperation between the two nations. In light of this proposal, both ministers have agreed to further discuss the initiative during their upcoming meetings, initially at the Istanbul process gathering on Afghanistan set to take place in Almaty, followed by a standalone visit from Khurshid to Astana.

The envisaged pipeline is projected to stretch approximately 1,500 kilometers (around 930 miles), making it longer than the recently proposed Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline, which serves as a functional benchmark for this initiative. The route will originate from Shymkent, a historical city along the ancient Silk Road known for oil refining, and will subsequently enter Uzbekistan. Following that, the pipeline is designed to traverse through Afghanistan, mirroring the TAPI pipeline's trajectory as it continues into India via Pakistan. This strategic orientation is particularly noteworthy; while most existing hydrocarbon pipelines from Central Asia follow a predominantly east-west axis, this new pipeline mirrors TAPI's north-south alignment.

Not only does this project hold the potential to diversify energy routes from Central Asia to South Asia, but it also enhances India’s energy security at a time when accessing hydrocarbon resources is becoming increasingly competitive. The new pipeline could play a vital role in reducing dependence on traditional suppliers, while simultaneously providing Kazakhstan with a crucial outlet for its energy resources. By facilitating a direct connection to the South Asian energy market, India and Kazakhstan can foster stronger bilateral ties and promote mutual economic growth. As discussions progress, the success of this pipeline could further bolster India's role as a key player in regional energy dynamics, reinforcing its strategic importance in Central Asian geopolitics.

Indian diplomatic relations with Kazakhstan have been marked by a succession of ambassadors, each contributing to the strengthening of ties between the two nations. Rajiv Sikri served as the first ambassador from 1995 to 1999, laying the foundation for India's diplomatic presence in Kazakhstan post-Soviet Union. His tenure was followed by Syed Raza Hashim (1999-2002), whose efforts helped to enhance bilateral cooperation. Vidya Sagar Verma (2002-2004) continued this momentum, and Asoke Kumar Mukherjee (2004-2007) focused on expanding trade relations. Following him, Ashok Sajjanhar (2007-2010) played a vital role in promoting India's educational and technological interests in Kazakhstan. Ashok Kumar Sharma (2011-2014) further strengthened the ties as he facilitated various agreements. Harsh Kumar Jain (2014-2017) emphasized strategic partnerships, while Prabhat Kumar (2017-2021) worked towards enhancing cultural exchanges. The current ambassador, Shubdarshini Tripati, continues to work on advancing the India-Kazakhstan bilateral agenda, focusing on economic, cultural, and geopolitical cooperation.

The economic relationship between India and Kazakhstan has shown significant growth over the years. In the fiscal year 2010-11, total trade reached approximately $130.59 million. This figure saw a dramatic rise in subsequent years, with trade figures soaring to $436.25 million in 2011-12 and further slightly declining to $426.22 million in 2012-13. However, from 2013-14 onwards, trade values skyrocketed, reaching $917.84 million and peaking at $952.26 million in 2014-15. This increasing trade volume reflects the successful efforts made by both countries to explore diverse sectors such as energy, pharmaceuticals, textiles, and engineering goods.

India's exports to Kazakhstan have also shown a dynamic pattern, with figures starting at $172.16 million in 2010-11 and climbing to $286.23 million in 2012-13 before stabilizing at approximately $250.59 million in 2014-15. This highlights India’s focus on exporting goods such as medicines, machinery, and agricultural products. Imports from Kazakhstan have exhibited substantial growth, particularly in energy and raw materials, with values surging from $138.42 million in 2010-11 to $701.57 million in 2014-15. This reciprocal trade relationship plays a key role in the economic stability and growth of both countries while enhancing their strategic partnership in the region.