Kazakhstan attracts $13.3 Billion in FDI in H1 2023, seeks enhanced partnership with India

Kazakhstan is actively seeking higher foreign direct investment (FDI) from India following a substantial increase in foreign investments in the country during the first half of 2023.

Kazakhstan is currently experiencing a significant surge in foreign direct investment (FDI), with the first half of 2023 witnessing an impressive influx of $13.3 billion into the country. Noteworthy contributors to this substantial FDI include countries such as the Netherlands, the United States, Switzerland, Russia, China, South Korea, Belgium, France, the United Arab Emirates, and Luxembourg. This surge in foreign investments has positioned Kazakhstan as an attractive destination for global capital.

Breaking down the FDI by industry, the mining sector emerged as the primary beneficiary, attracting $5.6 billion in investments. Following closely was the manufacturing sector, which secured $2.9 billion. The diverse range of sectors drawing significant FDI underscores the country’s economic diversity and appeals to investors looking for opportunities across various industries.

India, in particular, has been identified as a key partner for increased foreign investment, given the robust trade and investment partnership shared between the two nations. Kazakhstan’s proactive approach to seeking higher FDI from India aligns with its broader strategy of fostering international collaborations to support economic growth.

The net inflow of FDI at the end of the first half of 2023 amounted to $4.1 billion, marking an impressive 86.6% increase compared to the same period in 2022. This substantial growth signals not only investor confidence in Kazakhstan’s economic prospects but also the country’s success in creating an investor-friendly environment.

In the context of the upcoming budget, Kazakhstan is prioritizing the allocation of funds to support small and medium-sized enterprises (SMEs). Minister of National Economy Alibek Kuantyrov emphasized the importance of backing existing SME projects and initiating new ones. This strategic focus on SMEs aligns with global economic trends, recognizing the role of these enterprises in driving innovation, creating jobs, and contributing to overall economic development.

As Kazakhstan positions itself as an attractive investment destination, the government’s commitment to economic diversification and support for SMEs reflects a comprehensive approach to sustainable development. The emphasis on collaboration with India and other nations underscores the country’s openness to international partnerships as it continues on its path of economic growth and development.