India and Kazakhstan - Evolving Economic Relations
Amandeep Kaur, Bawa Singh
Abstract
India and Central Asia have historical relations and both enjoyed trade, commercial as well as common customs. However, the political geography of Eurasia has been changed since 1989 and within these fragile circumstances the geo-strategic landscape of Central Asian region got affected. Due to its geographical location major powers such as US, Russia, China and regional countries have been paying attention toward this region for their own energy interests. Thus, due to the intersecting trade route and rich energy resources such state of affairs is called ‘New Great Game’. In this view, India also wants to fulfil its oil and gas need and takes a keen interest in this particular region. Besides, cultural and strategical relations, presently their economic relations have not yet been developed. Even after independence, the Central Asia did not figure prominently in Indian foreign policy. India has concentrated its relations with the Middle East on account of its energy importance. It seeks to fulfil its basic economic interests in the region through trade of goods & services, foreign investment, joint ventures, banking & insurance, agriculture, pharmaceutical products and technical training. For this purpose, India offers International North-South Transport Corridor (INSTC) which connects India to Central Asia through Iran. The new ‘Silk Route’ joins the old land route and creates new networks which would increase the potential of economic cooperation of India with Central Asian resource rich republics. During 2012, India signed a new Comprehensive Economic Cooperation Agreement to assimilate its market with the region. These ongoing geo-political and geo-economic relations of India with Central Asia have been diversified but raising at the highest level. Despite sincere efforts on part of India, its total trade with this region has been remained insignificant. Still, there are many potential areas of economic cooperation which could boost India’s economic link with region. On the other hand, FTA and SCO can also play significant role in their economic cooperation. However, India’s trade with Central Asian region is rather low i.e. 0.28 percent in 20132014 (Export-Import Bank, 2014). However, Kazakhstan is a largest trading partner of India among other Central Asian republics. Bilateral trade between India- Kazakh stood US$ 952.26 million during 2014-15. Thus Indian government launched a trip towards Central Asia where India signed many major agreements and MoU’s. The basic reason of India’s interest in Kazakhstan that it has ample of natural minerals and oil, gas and uranium products. Therefore, study emphasises on the Trends and Patterns of trade between India and Kazakhstan.
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How to Cite
Amandeep Kaur, Bawa Singh (2016). India and Kazakhstan - Evolving Economic Relations. IJCAS, Vol. 20, No. 1, .