Since mid-June, the world's attention has been focused on the high intensity Iran-Iraq war. But an equally significant event took place around the same time in Astana, the capital of Kazakhstan. The second China-Central Asia summit took place with more than 27 agreements signed between China and Kazakhstan alone. That the Central Asian region is becoming extremely significant in international relations and sought after by the world’s great powers is evidenced by the fact that over the past couple of months alone there have been three such summits - the EU-Central Asia summit and the Italy-Central Asia summit being the other two.
Central Asia is emerging as the new El Dorado of the world. Countries and blocs are making a beeline for it - from China to the EU.
The recent India-Central Asia Business Council meet and the India-Central Asia Dialogue at the Foreign ministers' level could not have come at a more opportune moment. It comes against the backdrop of Operation Sindoor, with India being a target of terrorism. In this, Central Asia understands fully India's concerns and the joint statement reflected this, where all countries condemned terrorism in all its forms and manifestations. But India also represents an enormous market and the great yet untapped trade potential that exists. Here, Kazakhstan stands out as the largest and most resource rich country in the region.
The recently held Astana International Forum (AIF) was an eye opener of sorts. Convened for the second year, it is a global platform meant to bring diverse voices for dialogue and cooperation on today’s most pressing challenges. The sheer breadth and range of the program, with heads of states from Africa to Europe, the hi-tech arrangements, the sophisticated infrastructure-all indicate a new power center in the world, often overlooked or undermined.
Kazakhstan’s unique geo-economic advantages
Kazakhstan is the 9th largest country in the world (2,724,900 km²), bordering Russia, China, Kyrgyzstan, Uzbekistan and Turkmenistan as well as the Caspian Sea. It has a 20.6 million population, with a GDP in 2023 of $ 288.1 billion. The country’s economy grew by 6 % in January – April, 2025.
It is an extremely resource rich country, its economy dependent on oil, gas, uranium, coal, and gold. It has the world's largest known uranium deposits, and 19 of the 34 types of raw materials needed for major economies, including uranium, titanium, copper, lithium, cobalt, tungsten and many others. Most recently new deposits of rare earth metals were discovered in the country, with initial estimates point to around one million tons of rare earth metals.
All this makes Kazakhstan an attractive destination for sourcing raw material. India already has a long-standing agreement in place over the supply of uranium from Kazakhstan. However, the real opportunity for India is the fact that Kazakhstan faces challenges of low productivity and the dominance of extractive industries. This hinders economic diversification and growth.
India’s market size is an attractive proposition
India is a giant market for us; Kazakh Deputy Foreign Minister Alibek Kuantyrov tells this writer on the sidelines of the AIF. At the same time, he continues, we want to start exports of finished goods, we need manufacturing and processing lines. The minister proposes that Indian businesses and investors set up production and manufacturing facilities inside Kazakhstan.
One of Kazakhstan's major imports are pharmaceuticals, a field that India excels in. This is an area that India pharmaceutical companies must definitely look into. Exporting pharmaceutical products from India is to a certain extent hampered by connectivity issues. Kazakhstan is the largest landlocked country in the world and there are no direct land or shipping routes with India, though the country is doubling down on development of infrastructure and connectivity. This, the minister says, can be overcome by bringing and setting up production facilities inside the country.
Indian investments may trail China but there’s potential for more
Indian investments in Kazakhstan currently stand at approximately $500 million, a 40 per cent increase in 2024. This is, however, much less than what EU, China, or South Korea has invested there. The US remains the biggest investor, followed closely by China. There is scope for much more. "We would like Indian investments in the energy sector, IT, defence, green energy and mining, besides in health care", says Kuantyrov, pointing out that India has capital, technology, and labour resources. India, through the Mittal group, also has a good reputation in Kazakhstan's mining industry, with the business group having taken over steel plants there.
Kazakhstan is actively investing in AI. The International Advisory Council on Artificial Intelligence under the President was created this year, under which a program to train 100 thousand IT specialists is being implemented. This is almost tailor made for India's IT giants, given the reputation that India’s IT sector enjoys.
India’s stock is high thanks to the Soviet legacy
In order to incentivise foreign investments, the government of Kazakhstan is consistently taking measures to improve investment climate and deepen investor confidence in the country. For instance, Kazakhstan has established an appropriate legislative base, by signing 49 bilateral and multilateral investment treaties to guarantee investors’ rights. The Government provides comprehensive support for investment projects, which includes fiscal incentives, like exemption from Corporate Income Tax, VAT, Land Tax, and other subsidies. The country has also established 14 Special Economic Zones (SEZs) throughout its territory, which offer well-developed infrastructure and a wide range of investment preferences.
Thus, Kazakhstan seems to be a land of almost unlimited opportunities. It may be a leftover of its Soviet legacy, but as this author found, India still resonates with large sections of the people there. India must seize the opportunities offered there - in a land which is mere two and half hours’ flight away from Delhi, and where warm feelings for India still exist.
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