Aditi Bhaduri
Kazakh President Kassym-Jomart Tokayev sent a congratulatory message to Prime Minister Narendra Modi on India’s Independence Day. In his telegram, Tokayev said this holiday embodies the unshakable spirit of the people of India and the country's outstanding achievements in nation-building, economic development, and expansion of international cooperation. The President expressed confidence that the strategic partnership between the two countries will be further strengthened.
A couple of days earlier, Lieutenant General Sultan Kamaletdinov, First Deputy Minister of Defence, Chief of the General Staff of the Armed Forces of the Republic of Kazakhstan, called on General Upendra Dwivedi, Chief of India's Army. Their discussions focused on advancing bilateral defence cooperation, expanding military-to-military ties, the prevailing geostrategic environment in the region, and reaffirming the mutual commitment to regional stability and global peace.
Given the current geopolitical and economic tensions that India is facing, the rebooting of relations with Central Asia in general and Kazakhstan in particular is necessary. India does understand the strategic and economic importance of the region. The recent India-Central Asia Business Council meeting and the India-Central Asia Dialogue at the Foreign Ministers' level testify to this.
These events came against the backdrop of India's Operation Sindoor, when India faced terrorism anew. Central Asia fully empathises with India's concerns on cross-border terrorism and the joint statement reflected this, where all countries condemned terrorism in all its forms and manifestations.
Lt. Gen. Sultan Kamaletdinov, Chief of the General Staff of the Armed Forces of Kazakhstan, with Chief of Army Staff General Upendra Diwivedi
India-Kazakhstan bilateral defence ties currently encompass military-technical cooperation, military education and training, joint exercises, bilateral visits, etc. Since 2021, the two countries have participated in joint defense exercises that alternate on the territory of each. Both Kazakhstan and India contribute to the UN's peacekeeping forces and have cooperated in Lebanon as part of UNIFIL - the UN peacekeeping mission there. Hence, close cooperation between both countries is not just welcome but a necessity.
Kazakhstan is the largest and most resource-rich country in the region. The 9th largest country in the world, it borders Russia, China, Kyrgyzstan, Uzbekistan, and Turkmenistan, as well as the Caspian Sea. It has a 20.6 million population, and its GDP in 2023 was $ 288.1 billion, which it aims to double by 2030. 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. Kazakhstan’s estimated oil reserves stand at 78 billion tons as of 2024, and it ranks 18th globally in gold reserves. 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 pointing to around one million tons of rare earth metals. This also makes Kazakhstan an important economic partner for India. It represents both a valuable destination for sourcing raw material and a market for manufactured goods, as well as for investments.
The country is already India's largest supplier of uranium, and a long-term agreement is in place over the supply of uranium from Kazakhstan. It can also, in a few years, begin the extraction and supply of other rare earth metals, which are a high-demand product in the world today and over which India seeks self-sufficiency.
Its population of 20 million plus is set to rapidly increase, with the majority being under 30 years of age. Hence, Kazakhstan represents a good market for Indian manufacturers. The tariff row with the current US administration of President Donald Trump has now convinced Indian exporters that they need to diversify their export markets, and Kazakhstan can be one of those destinations. This is particularly pertinent since much of Kazakhstan’s industries are extractive.
The World Bank has recommended that Kazakhstan start manufacturing to stimulate economic growth. This neatly converges with the Government of India's recent directive to India Inc. According to a recent report in the Financial Express, top government sources have said the idea being shared with members of industry is that Indian companies should look beyond participating in and winning just global tenders abroad and then setting up project offices in those countries to complete their orders. “Instead, we are telling them to establish permanent establishments, and are ready to help them out in this regard through our missions in those nations,” the sources said, leading Indian groups must look beyond a “camp office” approach.
Kazakhstan seeks investments and production lines to be set up inside the country. To that end, the country has taken a slew of measures to attract foreign investments into the country and to simplify the process of doing business in the country. For instance, 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.
Kazakhstan has entered into many bilateral and multilateral agreements with other countries and multilateral organisations to create a legislative base for investor confidence and protection. Being a landlocked country, its connectivity for trade and commerce is constrained. Hence, the country is doubling down on infrastructure projects like railways and trans-Caspian routes like the Trans-Caspian International Transport Route, more popularly known as the Middle Corridor.
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In 2024, Kazakhstan attracted $15.7 billion in foreign direct investment for new projects, marking an 88% increase compared to the previous year. This proves how seriously the country is stepping up to meet investors' demands and confidence. As per 2023 statistics, Kazakhstan has emerged as India’s top trading partner in Central Asia, with total trade turnover amounting to $1 billion, with the balance being in favour of India.
There is certainly now room for far more cooperation in trade and investments.
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