India and Uzbekistan are paving new paths

India and Uzbekistan: New Horizons of Cooperation

Diplomatic ties between Uzbekistan and India were established on March 18, 1992. In 2011, following the state visit of the first President of Uzbekistan, Islam Karimov, to India, the countries announced the formation of a strategic partnership.

In recent years, interaction between the two countries has become regular, and the economic agenda has expanded significantly, encompassing not only pharmaceuticals and trade, but also logistics, IT, energy, and defense.

A significant milestone in bilateral relations was Shavkat Mirziyoyev's first state visit to India, which took place from September 30 to October 1, 2018. Following this visit, approximately 20 documents were signed relating to trade, investment, pharmaceuticals, tourism, agriculture, healthcare, and science.

In January 2019, Shavkat Mirziyoyev met with Narendra Modi again, this time as the guest of honor at the major international investment summit, Vibrant Gujarat, in Gandhinagar. At the time, the two sides discussed the practical implementation of the agreements reached in 2018.

In December 2020, a virtual summit was held between Mirziyoyev and Modi. This was India's first bilateral virtual summit with a Central Asian country. Following the summit, the leaders adopted a joint statement on a strong partnership and set a goal of achieving $1 billion in trade turnover in the coming years.

In January 2022, the President of Uzbekistan participated in the first India-Central Asia online summit. Mirziyoyev proposed developing joint projects in pharmaceutical production, training virologists, and developing a cooperation program to implement digital innovations, fintech, and blockchain technologies. At the same time, the Uzbek leader announced the start of development of a transport corridor through the port of Chabahar, which will provide connections between Uzbekistan and India.

Shavkat Mirziyoyev and Narendra Modi also meet regularly at various international venues. Their next meeting took place in September 2022 in Samarkand at the SCO summit, where they discussed expanding their strategic partnership. In December 2023, they discussed the bilateral agenda on the sidelines of the Conference of the Parties to the UN Framework Convention on Climate Change (COP28) in Dubai, and in October 2024, at the BRICS summit in Kazan. A telephone conversation took place in August 2025.

The India-Uzbekistan Intergovernmental Commission on Trade, Economic, Scientific, and Technological Cooperation is actively functioning. Its 14th meeting was held on June 19 of this year, where issues of trade, investment, transport and logistics, IT, pharmaceuticals, healthcare, education, tourism, and regional security were discussed.

Trade remains a key driver of bilateral relations. According to Uzbek statistics, India ranked ninth among Uzbekistan's top trading partners by the end of 2025. Last year, bilateral trade increased by a third, reaching $1.318 billion, quadrupling over the past eight years.

The bulk of trade turnover is made up of Indian imports ($1.153 billion), including medicines, automotive components, equipment, and services. Over the past year, India has become Uzbekistan's largest beef importer, accounting for almost half of the country's beef imports. Fertilizers, services, jewelry, fruits and vegetables, and lubricants are traditional exports from Uzbekistan.

The two sides cite reaching $2 billion as their next trade goal. To achieve this, they plan to expand mutual market access for goods, develop transport infrastructure, and facilitate payment mechanisms.

Currently, approximately 400 enterprises with Indian capital operate in Uzbekistan. In 2025, foreign direct investment and loans from India amounted to $247 million. Overall, from 2016 to 2025, the total volume of investments and loans attracted from India reached $587 million.

According to the Ministry of Investment, Trade, and Industry of Uzbekistan, Indian businesses are moving from exploring the Uzbek market to practical investments, and the total portfolio of joint projects exceeds $5 billion.

In recent years, digital technologies, healthcare, energy, mining, and infrastructure have been added to traditional pharmaceuticals. This expands the base of India's presence, but a significant number of major investment projects are still in the implementation or preparation stages.

Logistics is critical to expanding trade. Uzbekistan is landlocked, and there is no direct overland route to India. Therefore, Tashkent is considering several options for entering the Indian market via Iran. In May 2024, the Indian and Iranian authorities signed a long-term bilateral contract for the operation and development of the Iranian port of Chabahar. Its use by the Uzbek side is being discussed as a potential channel for the delivery of Uzbek cargo to India and further to other South Asian markets.

In June 2025, at the fourth meeting of the India-Central Asia Dialogue, ministers reaffirmed the need for more active use of the International North-South Transport Corridor (INSTC), in which the port of Chabahar is assigned a significant role. India, in particular, reaffirmed its support for Uzbekistan's membership in the INSTC.

The joint statement following the dialogue specifically emphasized the need to increase direct and transit freight traffic and improve financial connectivity. The parties are discussing the use of digital payments, interbank mechanisms, and national currencies.

Military cooperation is developing in a separate area. In 2019, the countries established a joint working group on defense cooperation. Its fifth meeting was held in August 2025.

The Dustlik joint military exercises, held alternately at the two countries' training grounds since 2019, remain the primary practical element. These exercises practice unit operations in conditions primarily related to counterterrorism, including in mountainous and desert terrain. The seventh exercise took place in April at the Gurumsaroy training ground in the Namangan region.

Cooperation between defense industry structures is also developing. A delegation from the Agency for Defense Industry of Uzbekistan participated in the Aero India 2025 exhibition. This primarily focuses on the exchange of experience, training, exercises, and contacts between defense agencies.