Preferential Trade, Critical Minerals, and AI: What Uzbekistan and India Agreed on

Uzbekistan and India agreed to expand cooperation in a number of key areas, including preferential trade, critical minerals, peaceful use of nuclear energy, artificial intelligence, and transport corridors. These decisions were recorded in a joint statement issued following Indian Prime Minister Narendra Modi's state visit to Uzbekistan on August 29-30.

During the talks, Presidents Shavkat Mirziyoyev and Narendra Modi expressed their intention to deepen cooperation in trade, investment, transport connectivity, digital transformation, energy transition, critical minerals, food security, healthcare, pharmaceuticals, and education. The parties also expressed their desire to elevate their bilateral relations to a comprehensive strategic partnership.

Both countries acknowledged the "significant untapped potential" for increasing mutual trade and investment. During the talks, a goal was set for bilateral trade to reach $5 billion by 2030. Currently, over 300 companies with Indian capital operate in Uzbekistan, and over the past ten years, over $1 billion in Indian investment has been attracted to the country's economy. The number of joint ventures has increased sevenfold in recent years. Fourteen direct flights operate weekly between the countries, and four Indian higher education institutions operate in Uzbekistan.

To expand the range of goods traded, eliminate non-tariff barriers, and develop industrial cooperation, it is planned to establish a joint working group on non-tariff issues and investment barriers. Separately, the parties agreed to develop e-commerce, digitalize trade procedures, and implement platforms to support small and medium-sized businesses. India reaffirmed its support for Uzbekistan's accession to the World Trade Organization. The countries intend to develop dialogue between regulators and explore mutual recognition mechanisms to expedite access for goods to both countries' markets.

One of the central points of the statement was a possible preferential trade agreement. The parties noted the completion of a joint study on the feasibility of concluding such an agreement, and the relevant ministries have been instructed to study further steps within the established timeframe. Electrical and mechanical engineering products, automobiles, and pharmaceuticals were identified as promising areas for increasing trade. Uzbekistan and India also agreed to establish an institutional mechanism to address investor concerns.

In the area of critical minerals and energy, Uzbekistan and India agreed to explore opportunities for cooperation in geology, mining, nuclear energy, industrial cooperation, and critical and strategic minerals. This includes joint projects in mineral processing, the production of high-value-added products, and the recycling of secondary resources. Indian companies are expected to participate in the development of promising deposits in Uzbekistan, while Uzbek enterprises will be able to participate in joint projects in India. The parties also expressed interest in expanding cooperation in the peaceful use of nuclear energy. For critical minerals, joint projects are envisaged at all stages—from geological exploration and mining to processing and the formation of integrated value chains.

Uzbekistan and India will continue to work on the development of multimodal transport routes and logistics corridors between the two countries. The statement also outlines the intention to restore freight transportation to reduce transportation costs, although specific routes are not specified. Furthermore, the parties intend to exchange experience in road construction using modern technologies and consider joint projects to reconstruct and modernize road infrastructure. A separate focus will be the development of environmentally friendly and energy-efficient solutions for public transport in Uzbekistan.

The leaders noted the successful work of the Tashkent IT Park, established in 2019 based on the Indian model with the support of Software Technology Parks of India, and agreed to expand ties between technology parks, companies, startups, and educational institutions. Uzbekistan and India also intend to build on the agreements reached in February at the India AI Impact Summit in New Delhi. The parties agreed to strengthen cooperation in the development of safe, secure, and trustworthy artificial intelligence systems, including through the exchange of experience and best practices. AI is planned to be used to promote economic growth, innovative development, and address societal challenges. The countries also confirmed their interest in cooperating in the peaceful exploration of outer space, including the use of space technologies, the exchange of scientific data, and joint educational programs.

India will allocate $1 million for greening and ecological restoration projects in the Aral Sea region. These projects, including technical support, will be funded through the Indian grant program.

The parties also agreed to expand cooperation in healthcare and pharmaceuticals. Specifically, they supported the creation of new medical centers, laboratories, research facilities, and pharmaceutical production facilities in Uzbekistan jointly with Indian companies.

Furthermore, the parties intend to collaborate on the restoration of the ancient Buddhist monuments of Fayaztepa and Karatepa in the Surkhandarya region, the digitalization of cultural heritage sites, and the creation of 3D models of archaeological artifacts.

On the international agenda, Uzbekistan reaffirmed its support for India's candidacy for a permanent seat on the UN Security Council. The two sides advocated for a comprehensive reform of the UN, including the Security Council, to ensure it "reflects contemporary global realities" and becomes more representative and effective. Shavkat Mirziyoyev also congratulated Narendra Modi on India's assumption of the BRICS chairmanship in 2026. The Indian Prime Minister, in turn, expressed support for Uzbekistan's chairmanship of the Non-Aligned Movement in 2027-2030.

Following the visit, Narendra Modi invited Shavkat Mirziyoyev to make a return visit to India. The dates of the visit will be agreed upon through diplomatic channels.

Uzbekistan and India agreed to further strengthen cooperation in defense and security. The two sides commended the interaction between relevant agencies and the work of the joint working group on military cooperation, which is exploring new areas of cooperation in the defense industry, including joint production and development. The leaders also noted the joint military exercises "Dustlik," the most recent of which took place in the Namangan region in April 2026. India also recently donated BHISHM mobile hospital complexes to Uzbekistan and equipped a clinic at the University of Military Security and Defense. A delegation from Uzbekistan's Defense Industry Agency previously participated in the Aero India 2025 exhibition.

Special attention is being paid to interregional ties. In addition to the existing Gujarat-Andijan cooperation, the parties are exploring partnerships between Gujarat-Samarkand, Fergana-Haryana, and Agra-Samarkand.

In the humanitarian sphere, the establishment of a Sanskrit department of the Indian Council for Cultural Relations (ICCR) at the Tashkent State University of Oriental Studies was announced.

Narendra Modi also announced that the next India-Central Asia summit will be held in India in 2027. According to Sibi George, Uzbekistan remains one of New Delhi's key partners in the region.

Uzbekistan and India are "very close" to signing a new long-term agreement on uranium supplies, an Indian Foreign Ministry spokesperson stated. The current contract runs until 2026. India relies on imported fuel and plans to increase its nuclear power capacity from 7.9 GW to 100 GW by 2047.