India, Uzbekistan Target $5 Billion Trade By 2030, Move To Cut Barriers

(MENAFN- Live Mint) India and Uzbekistan have set a target of taking bilateral trade to $5 billion by 2030 and agreed to broaden the range of goods traded between the two countries, remove non-tariff barriers and address investment hurdles as the two sides seek to deepen economic ties.

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

The two countries agreed to create a joint working group to address non-tariff issues and investment barriers, with a particular focus on key sectors of bilateral trade, according to a joint statement issued during Modi's two-day state visit to Uzbekistan.

They also directed the relevant ministries to explore the next steps on the proposed Uzbekistan-India Preferential Trade Agreement on a time-bound basis, following the conclusion of a joint feasibility study.

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Bilateral trade between India and Uzbekistan stood at $1.3 billion in 2025, up 33.3% from the previous year, according to commerce ministry data.

Expanding trade

The leaders welcomed the strong economic partnership between the two countries but noted the“considerable untapped potential” to expand bilateral trade and investment, according to the joint statement.

Both sides agreed to take joint measures to broaden the range of goods traded, remove non-tariff barriers and promote industrial cooperation. They will also support efforts to strengthen manufacturing 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 digitalisation of trade procedures, including through digital platforms for small and medium-sized enterprises.

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

On investment, the countries agreed to identify mutually beneficial opportunities and establish an institutional mechanism to address investors' concerns and facilitate ease of doing business.

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They will also explore greater cooperation between Uzbekistan's 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 collaboration between Uzbek and Indian companies, leverage 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 accession to the World Trade Organization. Both sides agreed to work together to preserve the multilateral trading system with the WTO at its core, particularly in the interests of developing countries.

The leaders welcomed the outcomes 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 New Delhi.

The two leaders decided to elevate the bilateral Strategic Partnership to a Comprehensive Strategic Partnership. They also agreed to establish a foreign ministers-led mechanism to provide high-level coordination and oversee implementation of agreements and arrangements between the two countries.

Critical minerals

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

They will explore cooperation in geology, mining, nuclear energy and industrial activities, including mineral-resource processing, production of value-added products and recycling.

The two sides expressed interest in Indian companies participating in the development of prospective mineral deposits in Uzbekistan, while Uzbek enterprises could pursue joint projects in India.

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

Connectivity, technology

India and Uzbekistan reaffirmed their commitment to improving transport and logistics connectivity through multimodal transport routes and logistics corridors and to restoring freight transportation to reduce costs.

The two sides will also exchange expertise on advanced road-construction technologies, explore joint projects to modernize road infrastructure and consider environmentally friendly 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 support from the Software Technology Parks of India. They agreed to expand partnerships among technology parks, companies, start-ups and educational institutions.

The two countries also agreed to strengthen cooperation in high technologies and digital transformation, including the implementation of understandings reached in February on the sidelines of the India AI Impact Summit in New Delhi.

They agreed to cooperate on the development and advancement of safe, secure and trustworthy artificial intelligence systems through exchanges of experience and best practices.

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