On April 15-16, 2011, India’s Prime Minister Manmohan Singh paid his first official visit to Kazakhstan, after attending a meeting of the BRICS countries (Brazil, Russia, India, China and South Africa) on the Chinese island of Hainan. A series of bilateral agreements signed in the wake of his meeting with President Nazarbayev testify to India’s firm commitment to strengthening and expanding its presence in the most developed country of Central Asia. Previously, a lack of adequate air communication, the remoteness of both capitals and scarcity of financial inflows from India impeded relevant cooperation to the advantage of other regional players, primarily Russia and China.

The most important achievement for the Indian side was the signing of an agreement on the transfer of a 25 percent share in the offshore Satpayev block on the Caspian Sea to the state-run ONGC Videsh Ltd. Kazakhstan’s Government secured not only an 80 million dollar benefit paid by its Indian counterpart but also a promise of up to US$ 400 million worth of investments that the Indians plan to contribute to the first stage of exploration works. It is believed that the Satpayev block may contain over 250 million tons of oil reserves and will ensure daily oil supplies of 287,000 barrels at the peak of its operations. Earlier in 2009, Indian media reported that the ONGC was close to clinching a deal with Kazakhstan’s national oil and gas company, KazMunaiGaz, about the purchase of 30-40 percent in the Satpayev block, but such expectations did not materialize, possibly owing to heavy behind-the-scenes bargaining.

The heads of relevant agencies also signed an intergovernmental framework agreement on civil nuclear cooperation, which complements an earlier accord concluded during President Nazarbayev’s four-day visit to India in January 2009. Ever since the Nuclear Suppliers’ Group lifted a moratorium on India’s collaboration with third countries in civil nuclear activities in 2008, the Indian Government has concluded a series of agreements with a number of countries, including the U.S., Russia, France, Argentina, Canada and Mongolia. President Nazarbayev promised that Kazakhstan would be able to supply over 2,000 tons of uranium to India by 2014, as New Delhi foresees a fivefold increase in the production of nuclear energy for its rapidly developing industries and growing cities. A memorandum of understanding was already signed in 2009 between KazAtomProm, Kazakhstan’s state owned company overseeing the production and commercialization of uranium, and the Nuclear Power Corporation of India Ltd, but this new agreement lays the basis for large scale cooperation on government contracts.

While commenting on Kazakhstan’s outstanding role in Central Asia as the most developed economy and an active advocate of peaceful coexistence among neighbors, Prime Minister Singh expressed his desire to gradually introduce India to regional integration structures, namely by establishing close contacts with the Customs Union and reinforcing its role in the Shanghai Cooperation Organization. President Nazarbayev expressed his country’s deep sympathy for India’s aspirations to become a new permanent member of the UN Security Council, to which Singh responded with promises of support for Kazakhstan’s rotating membership in the UN Security Council in 2017-2018.

A tangible success for Kazakh diplomacy came with the signing of a strategic partnership agreement providing for India’s active participation in the implementation of various development programs on the territory of Kazakhstan. Both leaders mentioned the areas of energy, high technology, agriculture and pharmaceuticals as priority fields for the next few years. President Nazarbayev announced that the Intergovernmental Commission will soon fix the dates for the Year of India in Kazakhstan and a similar year-round cycle of cultural and educational activities aimed at promoting Kazakhstan in India. Parliamentary cooperation and technical programs for young professionals are now also on the agenda.

Nazarbayev underscored the fact that bilateral trade between Astana and New Delhi, which reached US$ 370 million last year, is not reflecting the significant economic potential of the two countries. One of the measures to improve the current situation would be to include Indian companies into the list of foreign partners participating in the Industrial and Innovation Program of Kazakhstan, in force until 2020. By boosting industrial development and pursuing diversification, Kazakhstan hopes to secure a steady 7 percent GDP growth by 2016, which will enable the domestic economy, under the most favorable circumstances, to show a US$ 15,000 GDP per capita index in five years’ time.

At the end of his meeting with the Kazakh President, Prime Minister Singh suggested that a joint Information Technology Center of Excellence be set up at the Eurasian National University in Astana, as part of India’s plans to share state of the art knowledge and expertise in high tech and information fields. Joint ventures between Kazakhstani and Indian companies were also discussed.