India, Uzbekistan aim for $5 billion trade by 2030, move to remove barriers

India and Uzbekistan have set a target of increasing bilateral trade to $5 billion by 2030 and agreed to expand the range of goods traded between the two countries, remove non-tariff barriers and address investment barriers as both sides seek to deepen economic ties.

The target was announced during Prime Minister Narendra Modi’s meeting with Uzbekistani President Shavkat Mirziyoyev on Sunday, according to a statement issued by the Prime Minister’s Office. The two leaders also called for a trade summit to deepen economic and investment ties.

According to a joint statement issued during Modi’s two-day state visit to Uzbekistan, the two countries agreed to form a joint working group to address non-tariff issues and investment barriers with special focus on key sectors of bilateral trade.

They also directed the relevant ministries to explore the next steps for the proposed preferential trade agreement between Uzbekistan and India on a time-bound basis after the conclusion of the joint feasibility study.

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Bilateral trade between India and Uzbekistan will reach $1.3 billion in 2025, up 33.3% from the previous year, according to Commerce Ministry data.

Trade expansion

The leaders welcomed the strong economic partnership between the two countries, but noted in a joint statement “considerable untapped potential” for expanding bilateral trade and investment.

The two sides agreed to take joint measures to expand the range of traded goods, remove non-tariff barriers and promote industrial cooperation. They will also support efforts to strengthen production and export capacities, promote regulatory dialogue and explore mutual recognition arrangements to facilitate faster market access.

India and Uzbekistan will strengthen cooperation in e-commerce and digitization of business processes, including through digital platforms for SMEs.

Electrical products, engineering products, automobiles and pharmaceuticals have been identified as sectors with significant potential for greater bilateral trade. The two sides also agreed to strengthen business-to-business ties in these areas.

In terms of investment, the countries agreed to identify mutually beneficial opportunities and establish an institutional mechanism to address investor concerns and ease of doing business.

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They will also explore greater cooperation between the Uzbekistan Investment Promotion Agency and Invest India through joint business forums, roadshows, investment seminars and stakeholder interactions aimed at increasing two-way investment flows.

The two sides agreed to promote cooperation between Uzbek and Indian companies, exploit complementarities between the two economies, and strengthen connectivity between their value-added supply chains.

The Uzbek side also appreciated India’s support for Uzbekistan’s entry into the World Trade Organization. The two sides agreed to work together to preserve the multilateral trading system with the WTO at its core, especially for the benefit of developing countries.

The leaders welcomed the results of the Intergovernmental Commission on Trade, Economic, Scientific and Technical Cooperation and the Uzbekistan-India Business Forums held in June on the sidelines of the Tashkent International Investment Forum and in August in Delhi.

The two leaders decided to upgrade the bilateral strategic partnership to a comprehensive strategic partnership. They also agreed to create a mechanism led by foreign ministers to provide high-level coordination and oversee the implementation of agreements and arrangements between the two countries.

Critical minerals

The two countries will expand cooperation in the field of critical minerals through joint projects covering geological exploration, mining, mineral processing and integrated value chains, the joint statement said.

They will explore cooperation in geology, mining, nuclear power and industrial activities, including mineral resource processing, value-added product manufacturing and recycling.

Both sides expressed interest in Indian companies participating in the development of potential mineral deposits in Uzbekistan, while Uzbek companies could pursue joint projects in India.

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The leaders also expressed interest in expanding cooperation in the peaceful use of nuclear energy. Separately, the PMO said Modi appreciated progress on the long-term uranium supply arrangement from Uzbekistan and reaffirmed the importance of strengthening cooperation on critical minerals.

Connectivity, technology

India and Uzbekistan reaffirmed their commitment to improve transport and logistics connectivity through multi-modal transport routes and logistics corridors and resume freight transport to reduce costs.

The two sides will also exchange expertise on advanced road construction technologies, explore joint projects to modernize road infrastructure, and consider green and energy efficient solutions for Uzbekistan’s public transport sector.

The leaders welcomed the operation of the first IT park in Tashkent, established in 2019 based on the Indian model with the support of Indian software technology parks. They agreed to expand partnerships between technology parks, companies, start-ups and educational institutions.

The two countries also agreed to strengthen cooperation in high-tech and digital transformation, including the implementation of agreements reached in February on the sidelines of a summit on the impact of Indian artificial intelligence in New Delhi.

They agreed to cooperate in the development and advancement of safe, secure and trustworthy artificial intelligence systems through the exchange of experiences and best practices.