Keynote Address of Dr. T.V. Nagendra Prasad, Ambassador of India,Astana
at the India-Kazakhstan Business Conference on Electronics and Engineering Goods
November 12, 2024
Astana

Distinguished guests, esteemed colleagues and friends, also those joining from India.

Special thanks to Representatives Electronics and Software Export Promotion Council Mr Sandeep Narula, Gurmeet Singh.

Engineering Export Promotion Council Joint Director Saikat Dutta.

Federation of Karnataka Chamber of Commerce Dr Kiran Kumar and Senior Vice President Uma Reddy who joined us virtually from India.

It's snowing outside with minus temperatures and this is the best way to connect businesses from both the countries that is in hybrid mode. We believe that these interactions should lead to physical visits mutually in good weather conditions.

Though the session is titled electronics and engineering goods, I wanted to give a comprehensive view on the huge potential that exists between India and Kazakhstan in various sectors.

I also hope this session will help in connecting interested parties on either side and promote understanding in opportunities.

Over the years, India and Kazakhstan bilateral trade has been dominated by energy imports by India and to an extent in pharmaceuticals, chemicals and minerals imports from India. It is time for shift to new areas which hold promise which include electronics, engineering goods including heavy engineering equipment, minerals, renewable energy, digital technologies, etc.

Today India is the 5th largest and fastest growing economy in the world. Its commodity exports alone crossed $400b, highest digital payment ecosystem and it is the third largest startup ecosystem in the world. I know Astana hub is doing well and Kazakh adaptation rate to digital payments and e Governance is very high but the scope for collaboration with India could be well explored due to the complementarities.

No doubt, Kazakhstan is the largest trade partner of India in Central Asia. In 2023, our bilateral trade is around USD 1 billion which is much below the potential. There has been increasing trend in engineering and electronic goods opening new avenues for bilateral trade. We have grown swiftly in tourism sector in the last two years, with over 100,000 Indian tourists visiting Kazakhstan. There is huge scope for medical tourism to India. Due to the flagship programmes like Make in India, Productivity Linked Incentive scheme etc India is becoming a favourite destination for manufacturing for several multi-national companies.

Indian companies are investing in infrastructure, logistics, power, mining, oil & natural gas, renewable energy, agriculture, medical equipment across the world and Kazakhstan must explore the opportunities as there is huge potential for India-Kazakh cooperation in these sectors.

The Electronics Sector

India’s electronics industry has established itself as one of the world’s fastest-growing markets. Between FY17 and FY23, our domestic production expanded at a compound annual growth rate of 13%, climbing from $49 billion to a remarkable $101 billion. This impressive growth is underpinned by strategic initiatives such as “Make in India” and strong government support. India’s transformation into a global manufacturing hub, particularly in electronics, has been extraordinary. We were the 8th largest importer of mobile phones till recently, now we are the second largest manufacturer of mobile phones in the world. Our mobile phone exports were only 0.2 b in 2014 and today its 14.5 b with a growth of over 60%. Government policies, including the Production-Linked Incentive scheme, have played a pivotal role, attracting more than $17 billion in investments across key sectors, and propelling our industry forward.

Our growth trajectory in electronics complements Kazakhstan’s ambitions for digital transformation. I congratulate Kazakhstan on its ranking, its 24th in Global e-government development index of the United Nations. The “Digital Kazakhstan” program is driving the adoption of advanced technologies, making the country an attractive partner for digital collaboration. India has offered UPI (Unified Payment Interface) platform to Kazakhstan for making their digital payment system an interoperable platform. By aligning our technological advancements, we can explore new avenues of cooperation, from manufacturing and software development to the implementation of smart systems and IoT solutions.

The Engineering Sector

Turning to the engineering sector, we see that, it too, has emerged as a powerful driver of trade between India and Kazakhstan. This sector encompasses a wide array of opportunities, from automotive components to industrial machinery and electrical equipment. India has long been recognized for its engineering expertise, and our companies are well-equipped to contribute to Kazakhstan’s infrastructure projects. The potential for collaboration is vast: Indian firms can play a critical role in building energy-efficient systems and developing infrastructure for Kazakhstan’s smart city initiatives.

By fostering partnerships between the industries, we can facilitate skill development, enhance technological capabilities, and jointly work on large-scale infrastructure projects that will drive growth in both countries.

The Road Ahead

The future of India-Kazakhstan cooperation in electronics and engineering goods is going to be truly transformative. Our governments are committed to fostering an environment conducive to growth. By 2025, India’s electronics sector is projected to reach $300 billion, driven by our unwavering commitment to innovation. Similarly, Kazakhstan’s forward-looking plans are setting the stage for unprecedented collaboration.

Both nations have the potential to collaborate in emerging fields like artificial intelligence, automation, renewable energy systems, and smart manufacturing. It is critical that we invest in these areas and seize this opportunity to advance our global competitiveness.

Conclusion
In conclusion, we are on the brink of a new era in India-Kazakhstan economic relations. This era is characterized by vision, innovation, and a profound sense of partnership. Our collaboration in both electronics and engineering goods will serve as a catalyst for broader economic engagement and unlock incredible opportunities for our businesses and communities.

Let us seize this moment to create a future where our progress is shared, our industries thrive, and our partnership continues to flourish. Thank you, and I look forward to the vibrant discussions and collaborations that will shape the future of our cooperation.