The Hindu Business Line : EEPC expects $25-m exports to Kazakhstan in 2004-05

EXPORT of Indian engineering goods to Kazakhstan is expected to be of the order of $ 25 million in 2004-05 compared with "negligible" levels in the last fiscal.

In the current fiscal till date, Indian engineering goods exports to Kazakhstan has touched $ 9 million, according to Mr Rakesh Shah, Chairman of Engineering Export Promotion Council (EEPC).

Addressing a news conference here, a day after a 90-member delegation of engineering goods exporters returned from Almaty, Mr Shah said that, as part of its "Focus CIS" programme, EEPC had organised the Indiatech Exhibition in Almaty from September 3 to 6, 2004, in co-operation with the Union Chambers of Commerce & Industry of the Republic of Kazakhstan, among others.

A total of 65 engineering enterprises from India representing manufacturers of automotive parts & components, bicycle & parts, castings & forgings, electric power machinery, electrical accessories, industrial plant & machinery and oilfield machinery, etc, participated in the exhibition.

According to Mr Shah, Kazakhstan is the ninth-largest country in the world with a geographical area that is 86 per cent the size of India.

It has a population of 15 million and has clocked a GDP growth of nine per cent annually in the last four years. Currently, India accounts for a mere 0.58 per cent of Kazakhstan's engineering goods imports.

As such, the country offered great scope to Indian engineering goods manufacturers and the first to move in would have the early-mover advantage. Already, during the four-day exhibition, on-the-spot business worth $ 1 million was generated.

Mr Shah said that, keeping in view the potential of the Kazakhstan market, Exim Bank has extended a $ 10-million line of credit to Indian exporters. Punjab National Bank is also going to open a branch in Almaty. In the meantime, confirmation of letters of credit can be made through select banks there.

Besides engineering goods exports, Indian oil& gas and pharmaceutical companies and turnkey projects contractors had good scope in Kazakhstan. With oil & gas reserves in that country pegged at the same level as in the whole of Europe, Kazakhstan provides opportunity to companies such as Oil & Natural Gas Corporation Ltd. Bilateral relations in the tourism sectors in both the countries can also be pursued.