confronts Kazakhstan today is to overcome its predominant reliance on natural resources so as to diversify into sectors such as telecommunications, financial services, transport, construction, pharmaceuticals, food processing etc.. Reasons for our strong and abiding relations are not difficult to find. Both our countries are multi-ethnic, multi-linguistic, multi-cultural societies committed to following secular policies and to countering fundamentalism, religious extremism and terrorism. Views of both our countries coincide on all major domestic and international issues.
The impact of the regulatory environment on local businesses around the world The Doing Business project measures the efficiency and strength of laws, regulations and institutions that are relevant to domestic small and medium-sized companies throughout their life cycle. Doing Business does not measure all aspects of the business environment that matter to firms and investors. For example, it does not measure security, macroeconomic stability, corruption, the level of skills, or the strength of financial systems. Findings & suggestion Supply: The past few years has seen a substantial increase in the number of contractors and builders, especially in the housing and road construction segment. Demand Demand for quality infrastructure construction is mainly emanating from the housing, transportation and urban development segments. Barriers to entry high working capital requirements can create growth problems for companies with weak financial muscle.
Bargaining power of suppliers : Due to the rapid increase in the number of contractors and construction service providers, margins have been stagnant despite strong growth in volumes. Bargaining power of customers The country still lacks adequate infrastructure facilities and citizens have to pay for using public services.
Competition o Very high across segments like road construction, housing and urban infrastructure development. o Relatively less in airport and port development.
The challenges and opportunities facing construction industry in Kazakhstan The construction industry is significant, with its output worth over 100 billion a year. The industry accounts for 8% of gross domestic product and provides employment for around three million workers. But in the current economic climate the construction and demolition industry is under ever increasing pressure from government, clients and the public to be seen as an industry where sustainability is a key priority. Kazakhstan should offer investment opportunities for Indian business According to the Government of Kazakhstan had prepared an appeal to the Head of the State to lift the moratorium on use of mineral resources in relation to investors, which are ready to take active part in the industrialization program. The economy of Kazakhstan's top priority remains the diversification and development of the extractive industry sector. According to the Strategic Plan, the share of manufacturing in GDP will amount not less than 12,5% by 2015, not less than 13% by 2020, while the share of non-oil exports should rise from 10 to 40% by 2015 and 45% - by 2020. In order to achieve the goals it is expected to invest about $ 20 billion in non-extractive sectors in the next five years. Agro-processing, construction materials production, oil refining, metallurgical, chemical and pharmaceutical industry are considered as the priority sectors of development. Kazakh government believes that one of the major post-crisis developments of the country is the restoration of a favorable business climate. In this regard, block reforms are developed to simplify business registration and accreditation, obtaining permits, licenses, certificates and improve opportunities for consultation as well.
Construction industry in Kazakhstan fostered by government-initiated programmes The construction industry suffered more than most areas of the Kazakh economy as a result of the global financial crisis which hit the country in 2008. Fortunately for builders, the government undertook several measures to support the industry, without which the consequences would have been more severe than the 5% reduction seen in 2009. One of the most prominent programmes prepared by the government is the State Programme on Forced Industrial-Innovative Development for 2010-2014, the main aim of which is to diversify the economy and increase its competitiveness. The programme calls for the expansion of several sectors, such as chemicals, nuclear and manufacturing, and to this effect, numerous investment projects are being implemented. Within the programme, 227 industrial plants and facilities have already been completed, at a total cost of $6.2bn. In turn, within the Road Map programme, 1,535 social system facilities were renovated in 2009-2010 as well as 2,634 educational facilities, 764 healthcare facilities, 119 sports facilities, and 361 cultural facilities. This led to an 18.6% increase in the value of renovation and reconstruction works in 2010. Bibliography http://business.gov.in/importexport/procedur eexport.php#top http://business.gov.in/taxation/import_proce dures.php http://business.gov.in/taxation/corporate.php http://business.gov.in/outerwin.php?id=http:/ /www.cbec.gov.in/customs/forms_pdf/23.pdf