India & Kazakhstan relation

The single most important challenge that

confronts Kazakhstan today is to overcome its
predominant reliance on natural resources so
as to diversify into sectors such as
telecommunications, financial services,
transport, construction, pharmaceuticals, food
processing etc..
Reasons for our strong and abiding relations
are not difficult to find. Both our countries are
multi-ethnic, multi-linguistic, multi-cultural
societies committed to following secular
policies and to countering fundamentalism,
religious extremism and terrorism. Views of
both our countries coincide on all major
domestic and international issues.

The impact of the regulatory environment on
local businesses around the world
The Doing Business project measures the
efficiency and strength of laws, regulations and
institutions that are relevant to domestic small
and medium-sized companies throughout their
life cycle.
Doing Business does not measure all aspects of
the business environment that matter to firms
and investors. For example, it does not measure
security, macroeconomic stability, corruption, the
level of skills, or the strength of financial systems.
Findings & suggestion
Supply:
The past few years has seen a substantial increase in the number
of contractors and builders, especially in the housing and road
construction segment.
Demand
Demand for quality infrastructure construction is mainly
emanating from the housing, transportation and urban
development segments.
Barriers to entry
high working capital requirements can create growth problems
for companies with weak financial muscle.




Bargaining power of suppliers :
Due to the rapid increase in the number of
contractors and construction service providers,
margins have been stagnant despite strong
growth in volumes.
Bargaining power of customers
The country still lacks adequate infrastructure
facilities and citizens have to pay for using public
services.


Competition
o Very high across segments like road construction,
housing and urban infrastructure development.
o Relatively less in airport and port development.


The challenges and opportunities facing
construction industry in Kazakhstan
The construction industry is significant, with
its output worth over 100 billion a year. The
industry accounts for 8% of gross domestic
product and provides employment for around
three million workers. But in the current
economic climate the construction and
demolition industry is under ever increasing
pressure from government, clients and the
public to be seen as an industry where
sustainability is a key priority.
Kazakhstan should offer investment
opportunities for Indian business
According to 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.

Construction industry in Kazakhstan fostered by
government-initiated programmes
The construction industry suffered more than most areas of the Kazakh
economy as a result of the global financial crisis which hit the country
in 2008. Fortunately for builders, the government undertook several
measures to support the industry, without which the consequences
would have been more severe than the 5% reduction seen in 2009.
One of the most prominent programmes prepared by the government
is the State Programme on Forced Industrial-Innovative Development
for 2010-2014, the main aim of which is to diversify the economy and
increase its competitiveness. The programme calls for the expansion of
several sectors, such as chemicals, nuclear and manufacturing, and to
this effect, numerous investment projects are being implemented.
Within the programme, 227 industrial plants and facilities have already
been completed, at a total cost of $6.2bn. In turn, within the Road
Map programme, 1,535 social system facilities were renovated in
2009-2010 as well as 2,634 educational facilities, 764 healthcare
facilities, 119 sports facilities, and 361 cultural facilities. This led to an
18.6% increase in the value of renovation and reconstruction works in
2010.
Bibliography
http://business.gov.in/importexport/procedur
eexport.php#top
http://business.gov.in/taxation/import_proce
dures.php
http://business.gov.in/taxation/corporate.php
http://business.gov.in/outerwin.php?id=http:/
/www.cbec.gov.in/customs/forms_pdf/23.pdf