Key Outcomes of the PM Visit to Uzbekistan

Highest Civilian Honour

  • Prime Minister Narendra Modi was conferred with the "Oliy Darajali Do'stlik" Order, Uzbekistan's highest state honour

Comprehensive Strategic Partnership Upgrade

  • Bilateral relationship formally upgraded from Strategic Partnership (2011) to Comprehensive Strategic Partnership
  • Broadens long-term engagement across strategic, economic, and technological domains

Defence, Security & Counter-Terrorism

  • Zero-tolerance approach to terrorism adopted by both nations
  • Call for action against terror financing, safe havens, and perpetrators
  • Expansion of defence-industrial cooperation through Joint Working Group on Military Cooperation
  • Successful Dustlik military exercise held in Uzbekistan in April 2026

Trade, Investment & Economic Integration

  • Trade target: USD 5 billion by 2030 (current volume: over USD 1 billion)
  • Establishment of Coordination Council led by Foreign Ministers
  • Upgradation of Joint Commission from secretarial to ministerial level
  • Joint Working Group to address trade barriers in engineering, automobiles, electrical goods, and pharmaceuticals
  • Agreed to take time-bound steps towards India-Uzbekistan PTA
  • India reaffirmed support for Uzbekistan's WTO accession
  • Investment cooperation between Invest India and Uzbekistan's Investment Promotion Agency

Critical Minerals, Energy & Nuclear Cooperation

  • Uranium supply framework: Long-term supply agreement for India's civil nuclear energy programme
  • Joint ventures in geological exploration, mining, processing, and recycling of critical minerals
  • Cooperation in peaceful uses of nuclear energy and renewable energy infrastructure
  • Energy grid modernization initiatives

Digital Transformation & DPI

  • UPI-UZQR Integration: NPCI International Payments Ltd agreement with Uzbekistan's National Interbank Processing Centre
  • Scaling up partnerships between startups, tech incubators, and IT parks
  • Collaboration on secure and trustworthy AI systems
  • Tashkent IT Park (established 2019 with STPI assistance)

Environmental Cooperation

  • USD 1 million grant for Aral Sea ecological restoration
  • Linking Uzbekistan's "Yashil Makon" with India's "Ek Ped Maa Ke Naam"
  • Afforestation and ecological rehabilitation initiatives

Pharmaceuticals & Healthcare

  • Utilization of Tashkent Pharma Park for joint manufacturing
  • Technology transfer arrangements
  • Indian medical laboratories and research centres in Uzbekistan

Heritage Preservation & Cultural Ties

  • Letter of Intent for conservation of Fayaz Tepa and Karatepa Buddhist sites
  • Cultural Exchange Program (2026-2030)
  • Lal Bahadur Shastri Scholarship for Hindi language learning
  • MoU for cooperation in AYUSH traditional medicines

Multilateral & Regional Alignment

  • Uzbekistan reaffirmed support for India's permanent UNSC membership
  • Uzbekistan intent to join International Solar Alliance (ISA) and International Big Cat Alliance (IBCA)
  • India pledged support for Uzbekistan's NAM Chairship (2027-2030)
  • Uzbekistan backed India's 2026 BRICS Chairship
  • Cooperation within SCO and Central Asia-India framework

Why is Uzbekistan Strategically Important?

Geopolitical Pivot

  • "Heart" of Central Asia - borders all Central Asian Republics and Afghanistan
  • Acts as linchpin for India's Connect Central Asia Policy

Energy & Mineral Security

  • Uranium for civil nuclear programme
  • Abundant reserves of gold, natural gas, and critical minerals
  • Essential for India's clean energy transition

Countering Regional Threats

  • Taliban takeover in Afghanistan increased risks of:
  • Radicalization
  • Drug trafficking
  • Cross-border terrorism
  • Collaborative intelligence sharing and joint exercises as buffer

Balancing China's Influence

  • Transparent, capacity-building alternative to China's debt-heavy BRI
  • Infrastructure investments and digital diplomacy (UPI integration)

Connectivity

  • Crucial for operationalizing Chabahar Port and International North-South Transport Corridor (INSTC)

Historical & Cultural Context

Historical Roots

  • Relations rooted in the Silk Route
  • Spread of Buddhism to Central Asia
  • Babur, founder of Mughal Empire, originated from Fergana Valley (Uzbekistan)
  • Diplomatic relations established: March 1992
  • Strategic Partnership: 2011

Current Trade Profile

  • Trade volume: USD 980 million (2024)
  • Indian exports: Pharmaceuticals, machinery, auto components, mobile phones
  • Uzbek imports: Fruit/vegetable products, fertilizers, lubricants

Development Partnership

  • High Impact Community Development Projects (HICDPs)
  • Healthcare, IT, and education initiatives
  • State-to-Region cooperation: Gujarat-Samarkand partnership

Key Challenges

  1. Connectivity Deficit: No direct overland access due to Pakistan's transit constraints; Uzbekistan is doubly landlocked
  2. Uranium Transit Risks: Complex logistics and safety requirements
  3. Banking Barriers: Limited direct banking links; thinly traded Uzbek Som
  4. China's Economic Dominance: Largest trading partner; CKU railway project
  5. Regional Security Risks: Afghanistan instability, ISIS-K threats
  6. Non-Tariff Barriers: Bureaucratic procedures, language barriers

Way Forward

  • Air Freight Corridors for high-value goods
  • Fast-tracking Preferential Trade Agreement
  • Mutual Recognition Agreement for product standards
  • Green energy investments via ISA framework
  • Real-time intelligence sharing on terror financing and cyber threats