PM Modi in Tashkent: India, Uzbekistan seek to unlock next phase of $1.5 billion trade ties

PM Modi in Tashkent: Prime Minister Narendra Modi arrived in Tashkent on a state visit to Uzbekistan on 29 August where he was was warmly received by President Shavkat Mirziyoyev at the airport.

Before emplaning, the prime minister expressed confidence that the diplomatic engagement will reinforce India's strategic partnerships across Central Asia.

PM Modi is in Tashkent, Uzbekistan on 29–30 August. This is Prime Minister’s fourth visit to Uzbekistan. Therafter, the prime minister will travel to Bishkek, Kyrgyzstan to participate in the 26th Shanghai Cooperation Organisation (SCO) Summit on 31 August – 1 September 2026, as per the official itinerary.

“Over the next few days, I will be in Uzbekistan and the Kyrgyz Republic. The programmes include: Bilateral talks with President Shavkat Mirziyoyev in Tashkent to improve the India-Uzbekistan friendship. Visit to the Shastri Memorial and the Mahatma Gandhi Centre at the Tashkent State University of Oriental Studies. Multilateral and bilateral meetings at the SCO Summit in Bishkek,” PM Modi said in his departure statement.

India and Uzbekistan have relations that go back to ancient history. India was one of the first countries to recognize the state sovereignty of Uzbekistan after the latterʼs independence.

The protocol on establishment of diplomatic relations between India and Uzbekistan was signed in Tashkent on 18 March 1992. India and Uzbekistan declared their Strategic Partnership in 2011. Several institutionalised mechanisms operate at both political and official levels under this partnership, to ensure regular interaction.

“In recent years, India-Uzbekistan Strategic Partnership has seen significant advancement,” PM Modi said in the statement.

Prime Minister Narendra Modi visited Uzbekistan in July 2015, June 2016 and in September 2022. President Shavkat Mirziyoyev, isited India in October 2018 and in January 2019.

The last in person meeting of the leaders was held in October 2024 on the sidelines of BRICS Summit in Kazan. On August 12, 2025 the two leaders held a telephonic conversation and reviewed the strategic partnership developments.

PM Modi in Tashkent: $3 B Bilateral trade target

India and Uzbekistan share a strategic partnership established in 2011, with bilateral economic ties expanding steadily through cooperation in trade, investment, digital technologies and defence.

India is among top 10 trade partners of Uzbekistan with bilateral trade $1.5 billion as on today.

The two countries expect to double bilateral trade to about $3 billion over the next three years, Union commerce and industry minister Piyush Goyal said earlier this month. Goyal said the two countries could also explore a free trade agreement (FTA) as they deepen economic ties.

Addressing the India-Uzbekistan Business Forum in New Delhi, Goyal said that though bilateral trade has crossed around $1.5 billion, it still represents only a fraction of the potential between the two economies.

Laziz Kudratov, Uzbekistan's minister of investment, industry and trade, said at the forum that the bilateral trade grew by 30 per cent in 2025, surpassing $1.3 billion for the first time.

"We hope to reach $2 billion by next year, and we should work to increase our trade to $3-5 billion in the coming years," Kudratov said.

The major items of Indiaʼs exports to Uzbekistan are pharmaceutical products, mechanical equipment, vehicle parts, services, frozen buffalo meat, optical instruments and equipment and mobile phones. Indiaʼs import from Uzbekistan consists largely of fruit and vegetable products, services, fertilizers, juice products and extracts, and lubricants.

PM Modi in Taskent: Expanding bilateral cooperation

The renewed push comes as both countries seek to diversify economic ties beyond traditional sectors.

Uzbekistan has invited Indian companies to expand investments in mining, metallurgy, chemicals, energy, pharmaceuticals, automobiles and digital infrastructure. Both sides have agreed to work towards easing market access and reducing trade barriers.

Bilateral cooperation is expanding across critical minerals, pharmaceuticals, healthcare, IT, and technology, while Uzbekistan has invited greater Indian investment in its mining and metallurgy sectors, including gold, copper, uranium, critical minerals, and rare earth elements.

Around 400 Indian companies operate in Uzbekistan, with a combined project portfolio exceeding $5 billion, providing a strong foundation for deeper commercial engagement and expansion of bilateral economic ties, according to an analysis by Rubix Data Sciences Pvt. Ltd.

PM Modi in Tashkent: Goods and services exports

India’s total exports of goods and services in FY 2025-26 to Uzbekistan are estimated at $ 860.09 billion, while cumulative exports during April-May 2026-27 reached $162.69 billion, registering growth of 14.66 per cent over the same period of the previous year, according to Ministry of Commerce and Industry.

Merchandise exports grew by 16.09 per cent, with engineering goods, electronic goods, chemicals, petroleum products, gems and jewellery among the major drivers, the ministry said.

Uzbekistan reported that trade turnover with India reached $1.3 billion in 2025 (growth of 33.3% over the previous year) and Uzbekistan’s exports to India stood at $ 164.6 million (growth of 25.4%), while its imports from India reached $ 1.15 billion, growing by 34.6 per cent, the ministry said.

Indian exports to Uzbekistan have grown at a CAGR of 12.9 per cent over the last decade, while India’s services exports to Uzbekistan stood at $ 372.2 million in 2024.

India has carried out several projects under High Impact Community Development Project (HICDP) including setting up of an Allergological Center in Tashkent ( ₹10 Crore), an IT lab at the Academy of Armed Forces of Uzbekistan ( ₹8 Crore) and provisioning of computers for 125 ICT centers in schools in Syrdarya region ( ₹6 Crore).

PM Modi in Tashkent: Defence & Security Cooperation

India has longstanding and wide-ranging cooperation with Uzbekistan in the field of defence. A Joint Working Group on defence was established in 2019 and the fourth JWG meeting was held in Uzbekistan in April 2024.

India and Uzbekistan regularly participate in joint military exercises “DUSTLIK”, with the fifth edition held in April 2024 and attended by then then Army Chief General Manoj Pande during his visit to Uzbekistan. The sixth edition of exercise DUSTLIK was conducted in India in April 2025.

The size of the Indian community in Uzbekistan is estimated to be 18,500 which includes students (10,000) studying in different universities in Uzbekistan, workers (8000) and business professionals.

(With agency inputs)