New Delhi – Kazakhstan would like to directly involve India’s growing SME (Small and Medium Enterprises) sector in projects in the Central Asian country instead of the Indian SMEs coming in through projects bagged by third countries, including Singapore, European nations or even Arab countries, top Kazakh officials have said.
Kazakhstan Ambassador Bulat Sarsenbayev told SMEpost.com: “Small and medium enterprises from India are working in Kazakhstan, but through third parties from other countries, through Singapore, Arab countries. We sign a contract with Singapore, but the company identifies an Indian company for the job. We feel it is better to talk directly.”
Almas Aidarov, Deputy chairperson of Kaznex Invest, a Kazakh government undertaking, told SMEpost.com: “Many companies from India work in Kazakhstan. If you come to Astana (capital) or Almaty you will see many Indian people, but the officials are working through third countires – from Singapore, Europe, China, Arab countries.”
Explaining, Aidarov said that if Kazakhstan has a major project in the petrochemical sphere, and hires a big company as EPC (Engineering, Procurement, Construction) contractor from Europe, Japan or South Korea – “but finally we see that the sub contractor for the project are Indian companies, Indian engineers, Indian IT companies.”
“So we feel that why not work directly – Kazakhstan and India. Why should we work through some third countries, it is extra money,” Aidarov said.
The top Kaznex official said that both in India and Kazakhstan, the SMEs don’t get enough support from the government to venture into foreign countries. “You have your own support for SMEs, but it is local,. We too have our own programmes for our own SMEs. But when foreign SMEs enter then there are many problems.”
He said Kazakh SMEs are asking for information about Indian rules, how to work in India. “They know the problem with investor protection in India, there are complicated questions and there is a very complicated administration in India. We have many, many different parts and legislations, and your political system is also different.”
Aidarov said that FICCI (Federation of Indian Chambers of Commerce and Industry) and Kaznex are trying to create a base,. “We are trying to protect the investors and provide the necessary information. It is very expensive for the SMEs, but OK for big companies; they have a big staff, lawyers etc to do the job but SME don’t.”
Kaznex Invest is Kazakhstan’s national export and investment agency – like a one stop shop for all investment.
By R. Narayan
Image Curtsey: indiainbusiness