Wednesday, March 29, 2017

India to sign Free Trade Agreement with Kyrgyztan and Eurasian Economic Union

International North South Transport Corridor (INSTC) linking India to Central Asia is likely to get operationalised shortly

 Talks have been initiated for signing of an FTA between India and Kyrgyztan and the Eurasian Economic Union (EAEU) (Kyrgyzstan being one of the countries in the Union). The International North South Transport Corridor (INSTC) linking India to Central Asia is likely to get operationalised shortly which would offer a shorter and cost effective trade route for India’s bilateral trade with CIS countries.

This was stated today at Indo-Kyrgyz Business Investment Forum, organized jointly by The PHD Chamber of Commerce and Industry, the  Investment Promotion Agency of Kyrgyz Republic under The Ministry of Economy, in collaboration with Lark Logistics Pvt. Ltd, Ministry of Tourism - Kyrgyz Republic, The Kyrgyz Embassy in India, at PHD House, New Delhi.

The Kyrgyz delegation was led by H.E. Mr. Alymbek Orozbekov, Deputy Minister of Economy of the Kyrgyz Republic & Director State Agency for Promoting Investment, Kyrgyz Govt Officials and industrialists from Kyrgyz Republic.

Mr. Amar Sinha, Secretary-Economic Relations, Ministry of External Affairs, Govt of India, while speaking at the Forum meeting said that India is keen to enhance economic relations with the Kyrgyz Republic and with Eurasia. There is a need to increase bilatarel trade between  India and Kyrgz Republic, given the huge economic potential both countries can offer to each other, he added.

Mr. Alymbek Orozbekov, Deputy Minister of Economy of the Kyrgyz Republic & Director State Agency for Promoting Investment said that Kyrgyz Republic considers India as a strategic economic partner. He added that Kyrgyz Republic offers easy visa regime, liberal economic policies, has strategic geographical location in Central Asia, is on the ancient Silk Road, offers stable macro-economic environment, and has one of the lowest and most competitive tax regimes.

Mrs. Samarglul  Adamkulova, Ambassador of the Kyrgyz Republic in India said that her Government offers wide investment opportunities in such varied sectors as agriculture, tourism, and particularly in mining, such as gold, tin, rare earth, copper, coal, mineral and ground fresh water, tungsten, antimony and mercury.  She said India has been a friendly political and economic partner for the last 25 years.

Mr. Saurabh Sanyal, Secretary General, PHD Chamber of Commerce and Industry stated that the global dynamics are changing and developed markets are saturating, and hence there is a need for Indian businesses to look for alternative markets. The CIS region offers countless opportunities for developing economic and commercial ties for Indian businesses but there is a dearth of information about the economic scenario and available business opportunities in CIS.

Even after 25 years of diplomatic relations, economic ties between India and Kyrgyz Republic have remained modest and cooperation between the two hasn’t reached desirable levels, he added. Sh. Saurabh Sanyal also stated that there is no doubt that the need of the hour is to develop strong economic relations with developing countries around the globe and Kyrgyz Republic is one of the prominent countries in the CIS region.

India is coming up in a strong way with growing middle class, rapid urbanization, increasing disposable income, and an abundant labour force which gives Kyrgyz Republic a prospective market for its products and services.

India is rapidly progressing at all fronts at the global level which can be majorly attributed to path breaking initiatives taken by the Government of India and schemes like the Ease of Doing Business, Make In India, Skill India, Digital India, Smart Cities, Clean India, amongst others that are aimed at increasing exports from India and making it a manufacturing hub.

It is a well-known fact that culture binds people. Hence, apart from trade and investment, both India and Kyrgyz Republic should promote tourism and cultural exchanges as people to people contact is very important to build long-lasting relationships.

There is great potential and opportunities for cooperation in sectors such as – Construction, Energy, Tourism, Agriculture, Medicine, Transport, Telecommunications, Mining, Textile, Industry, Banking, amongst others.

Some of the potential sectors, wherein significant investment projects are available in Kyrgyz Republic, are –

Sector  Amount of Investment (in thousands of USD)
Construction    34,233
Energy  69,235
Tourism 76,822
Agriculture     2,15,196
Medicine        4,250
Transport       62,800
Telecommunications      67,300
Mining  1,81,805
Textile 951
Industry        2,600
Banking


The Indo-Kyrgyz Business Investment Forum, will extend an excellent opportunity to explore business avenues in Kyrgyz Republic and discover channels for trade and joint ventures. The Forum will provide a platform to members who look forward to interact with the delegation and gain firsthand information on the intricacies involved in doing business in Kyrgyz Republic and discuss about the existing challenges present there.

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