India and Uzbekistan’s Strategic Roadmap for Doubling the Bilateral Trade by 2029

Policy Update

Ameya Satam

Background:

In June 2025, during the Tashkent International Investment Forum (TIIF), India was among the 97 countries that participated in this forum (Global Trade and Technology Council of India, 2025). Active participation by the Global Trade & Technology Council (India) underscored New Delhi’s motive to strengthen bilateral ties and invest in key sectors like healthcare, education, textiles, pharmaceuticals, manufacturing and diagnostics.

Concurrently, the 7Saber, a sportswear brand owned by Urban Hayot LLC, signed an MoU with the GTTCI in this event (Global Trade and Technology Council of India, 2025). The signing of this MoU has created an opportunity for Uzbekistan to enter the Indian textile market with the support of the GTTCI. GTCCI has committed to providing support to various business companies of Uzbekistan to grow their networks in retail alliances and e-commerce platforms. Opportunities like digital marketplace promotion and collaborations with Indian influencers will be provided with the help of GTCCI, which will increase the outreach of Uzbekistani companies in the Indian market. 

GTTCI also got the opportunity to explore investment opportunities in Karakalpakstan. It is important to highlight that Karakalpakstan is developing as a main area that is being regularly chosen by foreign investors, as it is rich in minerals, natural resources, and human capital. Karakalpakstan’s wealth of raw materials and human capital makes it prime territory for Indian capital allocation in agro-processing, mining, healthcare, and education—thereby anchoring New Delhi’s economic footprint in the region.

As GTCCI got the chance to explore the area for investments, and it assured that the Uzbek government wants India to participate in these sectors.  Interests in investment opportunities in airports to develop an air corridor and the Navoi cargo were expressed by GMR Group, like major players (Seli, 2025). During this forum, GTTCI also interacted with His Excellency Mr Laziz Kudratov, who is the Hon’ble Minister of Investments, Industry and Trade of Uzbekistan. The interaction was mainly focused on how India can contribute to succeeding with Uzbekistan’s Vision 2030. In this forum, the leaders of Uzbekistan promised the Indian investors that the Uzbekistani government would give full support in single-window clearances, land allocation, and investment protection mechanisms. 

Latest Developments & their Importance:

With the intention of enhancing the strategic partnership in the industrial, healthcare and technology sectors, a special panel session under the title of “India-Uzbekistan: Two Nations, One Vision for Creating the Next Investment Hub” was organised at the TIIF 2026, which was organized from 16-18 June (Khan, 2026). This title actually portrayed the ambition of Uzbekistan to become an investment hub in the future. The discussions in this session mainly focused on business growth, technological progress, and sustainable development.  

On 19 June 2026, the 14th Session of the India-Uzbekistan Inter-governmental Commission in Tashkent was organized in which the meeting mainly covered topics related to Trade, Economic, Scientific and Technological Cooperation. The agreed strategy for increasing the bilateral trade between the two countries was planned in this meeting. Promoting trade, handling non-tariff barriers, and working with the purpose of fulfilling the goal of doubling bilateral trade by 2029 are expected to be achieved (Sharma, 2026). 

Table. No.1.1: Major Exports & Imports between India & Uzbekistan

Note. Adapted from India (IND) and Uzbekistan (UZB) trade profile, by the Observatory of Economic Complexity, 2026 (https://oec.world/en/profile/bilateral-country/ind/partner/uzb) 

Possible Opportunities of Cooperation & Trade – 

The Digital and Financial Infrastructure Nexus:

During the TIIF 2026, Uzbekistan’s President Shavkat Mirziyoyev gave an important announcement which introduced tax-free zones for artificial intelligence projects and data centres. Along with it, he stated that the ‘New Uzbekistan’ will always welcome foreign investors who would invest in “our country with trust and ideas.” This statement encouraged the foreign investors to invest more in Uzbekistan. 

He also announced that Uzbekistan is planning to prepare an open digital geological database of all minerals, which will also include the rare minerals, and the number of deposits will increase by four times, to be put up for auction, which will encourage foreign investors to invest in the “Metals of the Future” technoparks. These technoparks are being developed in the areas of Tashkent and Samarkand regions, which may see investments by India in future because the talks between India and Uzbekistan are in progress in the fields of digital and energy cooperation. 

Karakalpakstan has been built as a special zone for artificial intelligence projects and data centres. If India and Uzbekistan’s talks progress positively, then India can get a great opportunity to contribute to these projects and data centres by providing the necessary digital services. Indian software companies are known for their software and IT skills, which portray India as a highly suitable candidate in this field. Indian investors in this territory can leverage the benefit of exemption from all types of taxes and duties on road, electricity, and water infrastructure, which will be taken care of by the state until 2040 (Sharma, 2026). 

India has shown its interest in various services like IT, digital public infrastructure, telecom, fintech, and other digital services, where Indian companies have proven their expertise. For example, in telecom services, companies like Reliance Industries can help Uzbekistan to build a high-speed fibre-optic infrastructure to connect the remote and rural areas.

Both sides are interested in collaboration in the Information and Communication Technology (ICT) and digital cooperation field. If both countries continue their collaboration in this field, then India will get various opportunities to showcase it’s potentials in IT, digital public infrastructure, telecom, fintech, and other digital services. India showed its interest in customs data exchange and is eyeing the opportunities in the fusion of payment infrastructure for secure and efficient payments, with the intention of aiding tourism, trade and commerce. To utilize the full economic potential, both countries are working on strengthening the transport and logistics interchange. Uzbekistan has approached India to share its experience in the digital logistics platforms and customs facilitation mechanisms. 

India has established a UPI facility in Uzbekistan, which can be considered a positive sign that would encourage more trade between the two countries. Net banking and card payments will become possible due to India’s UPI system. Indian tourists can take advantage of this for shopping in Uzbekistan, as they are accustomed to such apps and platforms. Furthermore, India and Uzbekistan discussed the possible opportunities in energy cooperation. 

Critical Minerals and the Energy Transition:

India and Uzbekistan’s energy cooperation has a big scope for India to utilize it’s capabilities in minerals exploration, as Uzbekistan is a rich source of minerals like gold, copper, uranium, tungsten, natural gas, and other rare minerals. Uzbekistan has subsoil wealth and strategic raw materials, which account for a total projected value of $3 trillion (Sharma, 2026). Uzbekistan and India’s cooperation in this field can counter China’s dominance over the rare earths.

If both countries succeed in building resilient supply chains, then it will result in profitable trade. NTPC is also actively showing its presence in various tenders related to solar PV power plants and consultancy assignments for gas projects in Uzbekistan (Seli, 2025). A recent meeting of Uzbekistan’s Minister of Investments, Industry and Trade, Laziz Kudratov and India’s Minister of Heavy Industries, Hardanahalli Deve Gowda Kumaraswamy, at Bishkek focused on geology, mining, extraction of critical minerals, coal gasification, nuclear energy and industrial cooperation (UzDaily, 2026). In this meeting, Uzbekistan confirmed that it will be giving preference to the Indian companies for the development of promising deposits in Uzbekistan and metal processing (UzDaily, 2026). 

Education:

Sambhram University in Jizzakh, Acharya University in Bukhara, Amity University in Tashkent and Sharda University in Andijan have established their campuses and opened in these locations. Through such universities, India is able to establish its soft power in Uzbekistan. Students from the Indian diaspora can contribute more to the local economy of Uzbekistan.   

Pharmaceuticals, Agriculture and Food Processing:

India will majorly focus on product categories like pharmaceuticals, medical devices, agricultural products, and so on for exporting them to Uzbekistan. Earlier, Cadila announced an investment of $50 million in the healthcare, agriculture and food processing (Seli, 2025). Furthermore, the Uzbek government has offered support through providing 50,000 hectares of land for building a venue for the agro-processing sector (Seli, 2025).

The Uzbek government has encouraged foreign pharmaceutical and nutraceutical companies to establish a regional manufacturing or distribution presence through the government’s support. Subsidies and technology incentives are planned to be offered by Uzbekistan for Indian investors. These targeted subsidies and technology incentives aim to de-risk investments for Indian pharmaceutical manufacturers, accelerating the country’s transition into a regional logistics hub.  

Collaborations for regulatory harmonisation and structured bilateral policy dialogue, supply chain digitisation and documentation standardisation, bilateral investment facilitation and joint venture frameworks, clinical research and R&D collaboration and Institutional trade matchmaking and market commercialisation enablement are in progress (The Wire, 2026).

India’s expertise in agricultural and allied exports, processed foods, seed development, agricultural research, agricultural machinery and climate-resilient farming technologies makes it a highly reliable choice for Uzbekistan to collaborate in this sector and strengthen its agricultural sector. Uzbekistan is technologically backward in agricultural technology, where India can strengthen the agricultural sector through exporting modern machines useful for agriculture or through collaborative production. 

Recent Bilateral Trade Records: 

In 2025, India and Uzbekistan’s bilateral trade has attained $1.3 billion, which is a remarkable rise of more than 33% from 2024 (Akashvani News, 2026). More than $164 million worth of exports from Uzbekistan to India were recorded, which was remarked as a notable growth of over 25% on the other hand, Uzbekistan imported around $1.15 billion worth from India, which recorded a significant growth of 34.6% (Akashvani News, 2026). The Compound Annual Growth Rate has grown over 12% in the Indian exports to Uzbekistan in the last decade (Akashvani News, 2026). Along with this, India’s services exports to Uzbekistan had recorded the worth of more than $372 million in the year 2024 (Akashvani News, 2026). 

In 2024, around 90,000 Indians travelled to Uzbekistan, and there were over 12,000 Indian students present in Uzbekistan, who spent around $70 million every year in Uzbekistan (Seli, 2025). These factors are those that can boost the growth of bilateral trade between India and Uzbekistan, as UPI payments would make it easier for Indians to buy anything without having any barriers to carrying cash. According to the Ministry of External Affairs, 2026’s data, there are a total of 21,000 Indians living in Uzbekistan, which includes students (16,300) from different universities and worker & business professionals (4,700).

Challenges:

Between India and Uzbekistan, there are logistical issues that should be considered as hurdles in achieving the bilateral trade goals, as Uzbekistan is already a landlocked country. Increasing flights won’t solve this issue as the majority of the trade is dependent on land and sea routes. Selecting vulnerable land routes from conflict-prone border regions of Afghanistan for trade won’t benefit any country while the sea route through Iran is also currently facing political instability due to the recent Strait of Hormuz conflict. So, this option is also not reliable for trading.

Chinese investments in Uzbekistan are in large numbers if compared to India, and the geographical location of China also benefits their trade growth. India competing against China at the same pace is difficult in the current circumstances, as India doesn’t have the geographical advantage. China has also invested in new solar power plants in Uzbekistan, which can challenge India to keep its presence in the energy sector of Uzbekistan. From $2.1 billion to $10.7 billion, this significant growth in China’s investments in the last five years gives a clear sign of total dominance in Uzbekistan’s investments compared to other countries (Najibullah, 2026). 

Currently, India can support Uzbekistan in mineral exploration, but India can only provide limited help in mineral refining processes. India lacks significant infrastructure used for the mineral refining process at present. India is itself dependent on other countries for refined products. 

Regulatory issues while implementing UPI in Uzbekistan should be addressed. Frameworks of India’s Foreign Exchange Management Act (FEMA) and local regulations in Uzbekistan should be checked to abide by them or realign with them (Chaubey, 2026). Through bilateral efforts, compatibility within the payment systems will progress constantly. KYC norms, liability, and consumer protection are the issues which are required to be noticed for embracing them on a massive scale (Chaubey, 2026). 

Previously, non-tariff barriers relating to approvals, standards, testing, certification, customs procedures and market-access requirements have functioned as barriers and slowed down the trade & investment growth between India and Uzbekistan (Kumar, 2026). Overcoming such barriers is the current necessity of both countries to achieve their goals.

Way Forward:

Foreign Direct Investments in Uzbekistan also increase bilateral trade, as the Indian investors would buy the properties required to establish industries and produce products by buying raw materials from Uzbekistan. India and Uzbekistan can collaboratively aim to produce clean energy infrastructures, lithium-ion batteries, electric vehicles, advanced electronics and semiconductors and stand as an alternative option against China. 

This year, new routes have been planned in view of increasing direct flights between India and Uzbekistan. Weekly, 5 flights will run between India and Uzbekistan (ETTravelWorld, 2026). This indicates the possibility of more tourists from India visiting Uzbekistan, while more businessmen may visit Uzbekistan for business meetings, which would boost bilateral trade between both countries. This will also support the growth of trade between the two countries.

Focusing on smoothening the process of approvals, standards, testing, certification, customs procedures and market-access requirements will prove beneficial for the growth of trade and investment between both countries. For India, competing in the energy sector against China in Uzbekistan may be difficult, but there is a high possibility that India can give tough competition in the AI sector. Similarly, New Delhi is well-positioned to challenge China’s dominance in the mining sector in the near future.

By taking the benefit of advanced technology transfers facilitated through the U.S.–India Initiative on Critical and Emerging Technology iCET (Initiative on Critical and Emerging Technology), India has the scope to scale up its high-tech production. Deepening technology partnerships with Western allies (like iCET) enhances India’s upstream processing capacities, allowing it to export superior tech solutions to Central Asian markets. As of now, India is dominating the pharmaceutical sector of Uzbekistan, and in future, other sectors can also be dominated by India, which would eventually increase the bilateral trade between India and Uzbekistan. Through synchronized bilateral policies and strategic alignment, India and Uzbekistan are well-positioned to achieve their target of doubling bilateral trade by 2029. 

References:

1. Akashvani News. (2026, June 19). India and Uzbekistan agree to deepen trade and work towards doubling bilateral trade in next three years. News on AIR. https://newsonair.gov.in/india-and-uzbekistan-agree-to-deepen-trade-and-work-towards-doubling-bilateral-trade-in-next-three-years/ 
2. The Tribune. (2026, June 19). India, Uzbekistan aim to double bilateral trade in next 3 years, address non-tariff barriers. https://www.tribuneindia.com/news/bilateral-trade/india-uzbekistan-aim-to-double-bilateral-trade-in-next-3-years-address-non-tariff-barriers 
3. Sharma, A. (2026, June 19). India, Uzbekistan aim to double trade in 3 years, target barriers to smoother business flow. CNBC-TV18. https://www.cnbctv18.com/economy/india-uzbekistan-aim-to-double-trade-in-3-years-target-barriers-to-smoother-business-flow-19929029.htm 
4. Kumar, H. (2026, June 19). India flags critical minerals supply as key area for deeper energy cooperation with Uzbekistan. Livemint. https://www.livemint.com/news/india/india-flags-critical-minerals-supply-as-key-area-for-deeper-energy-cooperation-with-uzbekistan-11781881188315.html 
5. ETTravelWorld. (2026, June 12). Centrum air expands flights to uzbekistan five weekly services now available. The Economic Times. https://travel.economictimes.indiatimes.com/news/aviation/international/centrum-air-expands-flights-to-uzbekistan-five-weekly-services-now-available/131652401 
6. UzDaily. (2026, June 7). Uzbekistan and india discuss expanding industrial ties. https://www.uzdaily.uz/en/uzbekistan-and-india-discuss-expanding-industrial-ties/ 
7. The Economic Times. (2026, June 7). Uzbekistan can provide more incentives to Indian pharma firms, aims to become regional hub for supply. https://economictimes.indiatimes.com/industry/healthcare/biotech/pharmaceuticals/uzbekistan-can-provide-more-incentives-to-indian-pharma-firms-aims-to-become-regional-hub-for-supply/articleshow/131562284.cms 
8. Dipankar, K. (2026, May 25). Uzbekistan seeks greater Indian investment in fintech, digital infra; offers targeted incentives. ETBFSI. https://bfsi.economictimes.indiatimes.com/articles/uzbekistans-push-for-indian-investment-in-fintech-and-digital-technology/131296686 
9. The Wire. (2026, March 9). India and Uzbekistan launch landmark pharmaceutical & nutraceutical trade corridor, unlocking access to a USD 10 billion Eurasian market. https://thewire.in/ptiprnews/india-and-uzbekistan-launch-landmark-pharmaceutical-nutraceutical-trade-corridor-unlocking-access-to-a-usd-10-billion-eurasian-market 
10. UzDaily. (2026, June 20). Indian ambassador: Trade between India and Uzbekistan grew from 500 million to 1.3 billion over five years. https://www.uzdaily.uz/en/indian-ambassador-trade-between-india-and-uzbekistan-grew-from-500-million-to-13-billion-over-five-years/ 
11. Ministry of External Affairs. (2026, April). Brief on India-Uzbekistan relations. Government of India. 

12. Directorate General of Commercial Intelligence and Statistics. (n.d.). Title of the specific trade report, market feature, or tender notice. Indian Trade Journal. http://www.itj.dgciskol.gov.in/tE4FRbxxb3MaIpbwZI60rVhiPvA2ENffQxqMHb2o.pdf 
13. Seli, Y. (2025, September 25). Uzbekistan, India take ties to the next level. Business India. https://businessindia.co/magazine/trade/uzbekistan-india-take-ties-to-the-next-level  
14. Sharma, H. (2026, June 19). Uzbekistan courts global investors with AI tax breaks, duty-free zones & mining sector reforms. The Indian Express. https://indianexpress.com/article/business/uzbekistan-global-investors-ai-tax-breaks-duty-free-zones-mining-sector-reforms-10745538/ 
15. Global Trade and Technology Council of India. (2025, May). TIIF 2025: An ocean of opportunities – Uzbekistan emerges as the hub of Central Asia. https://gttcindia.com/tiif-2025-an-ocean-of-opportunities-uzbekistan-emerges-as-the-hub-of-central-asia/ 
16. Khan, F. (2026, June 23). India and Uzbekistan deepen strategic investment ties at TIIF 2026. Times Headline. https://timesheadline.in/en/2026/06/23/india-and-uzbekistan-deepen-strategic-investment-ties-at-tiif-2026/ 
17. Singh, A. P. (2026, April 16). India’s mineral strategy: Why processing and refining are crucial. Centre for Public Policy Research. https://www.cppr.in/archives/india-mineral-strategy-refining 
18. Chaubey, A. (2026, April 14). UPI goes global: Indian travellers to pay seamlessly across Central Asia soon. Angel One. https://www.angelone.in/news/economy/upi-goes-global-indian-travellers-to-pay-seamlessly-across-central-asia-soon  
19. Najibullah, F. (2026, June 9). China overtakes Russia as Central Asia’s top foreign investor. Radio Free Europe/Radio Liberty. https://www.rferl.org/a/china-russia-investment-central-asia-kazakhstan-uzbekistan-turkmnistan-kyrgyzstan-tajikstan/33776911.html 
20. Kumar, J., & Bawa, J. (2025). India’s strategic partnership with Uzbekistan challenge and opportunities. Journal of Advances and Scholarly Researches in Allied Education, 22(3), 17–29. https://ignited.in/index.php/jasrae/article/view/15841/30924 
21. Asian News International. (2025, April 15). Uzbekistan attracts Indian investment as telecom and energy reforms advance. https://www.aninews.in/news/world/asia/uzbekistan-attracts-indian-investment-as-telecom-and-energy-reforms-advance20250415140107/ 
22. Observatory of Economic Complexity. (2026, June). India (IND) and Uzbekistan (UZB) trade profile. 

About the Contributor

Ameya Satam is a Research & Editorial Intern at IMPRI specializing in International Relations and Strategic Studies. He completed his post-graduation in International Relations at Sikkim University, focusing on Indo-Pacific geopolitics and India–US cooperation, and is dedicated to analyzing regional security frameworks to inform evidence-based policy discourse. 

Acknowledgement

I would like to extend my sincere gratitude to Ms.Shruti Sethi, Ms.Simona Hughes and IMPRI India for their guidance and support.

Reviewers

Ms.Shruti Sethi and Ms.Simona Hughes

Disclaimer

All views expressed in the article belong solely to the author and not necessarily to the organization.

Read More at IMPRI:

Assessing the Indo-German Partnership for Energy Security through Renewable Energies

Multilateral Exercise Partnership of Regional Armies for Growth and Transformation in the Indian Ocean Region (PRAGATI) 2026: Strengthening India’s MAHASAGAR Vision