Uzbekistan invites Indian investment in rare earths and mining (Image Courtesy: Piyush Goyal/X)
NEW DELHI: India and Uzbekistan have set an ambitious target to double their bilateral trade to around $3 billion over the next three years, with both sides exploring deeper economic cooperation across multiple sectors.
The push was highlighted at the India-Uzbekistan Business Forum in New Delhi, attended by more than 200 business representatives.
Union Commerce and Industry Minister Piyush Goyal urged businesses from both countries to step up engagement, emphasising that trade must lead efforts to strengthen economic relations.
“Let’s look to double trade in next three years,” he said, while noting current bilateral trade stands at around $1.5 billion.
Exploring a Free Trade Agreement
Goyal indicated openness to a free trade agreement (FTA) as a way to deepen ties. “That is a promising idea. We can look at that,” he stated at the forum.
The remarks follow the 14th Session of the India-Uzbekistan Intergovernmental Commission, where both sides agreed to work towards doubling trade by addressing non-tariff barriers and expanding cooperation in pharmaceuticals, medical devices, automobiles and machinery.
He called for greater two-way investment, co-investment, co-manufacturing and co-innovation. India, he noted, offers strengths in information technology, a skilled workforce and digital public infrastructure, while Uzbekistan presents opportunities in mining and cotton production.
Uzbekistan Invites Indian Investment in Mining and Rare Earths
Uzbekistan’s Minister of Investment, Industry and Trade Laziz Kudratov invited Indian companies to invest in the country’s mining and metallurgy sector.
“We are top 10 globally in terms of gold, copper, uranium deposits. We have almost all types of critical minerals and rare earth elements. We would be happy to discuss and to bring Indian technologies, know-how, and capital to develop steel production, deep processing of copper, and rare earth metals,” he said.
Kudratov highlighted that bilateral trade grew 30% last year to cross $1.3 billion for the first time. “We expect this next year we will be reaching USD 2 billion and then we should join efforts to increase our trade to USD 3-5 billion in coming years,” he added.
Around 400 Indian companies currently operate in Uzbekistan, with a joint project pipeline exceeding $5 billion.
Priority Sectors for Collaboration
Beyond mining, Kudratov identified chemicals, renewable energy, pharmaceuticals and automobiles as key areas.
Uzbekistan is among the region’s largest fertiliser producers and invited Indian firms to expand manufacturing there for both domestic and third-country markets.
The country aims to raise the share of renewables in its energy mix to 54% by 2030, creating opportunities in solar, wind, battery storage and related infrastructure.
In pharmaceuticals, where Uzbekistan imports more than $3 billion worth of medical products annually, Indian companies were encouraged to set up joint manufacturing of medicines and vaccines. Existing collaborations with firms such as Dr. Reddy’s and Cipla were noted.
In the automotive sector, Uzbekistan produces around 500,000 vehicles annually and seeks localisation of components and industrial equipment by Indian partners.
The business forum formed part of wider high-level interactions. Uzbekistan’s Foreign Minister met President Droupadi Murmu and External Affairs Minister S. Jaishankar, with discussions covering trade, critical minerals, education, energy, defence and historical ties.
President Murmu underscored the potential for cooperation in mining, particularly rare earth minerals, agriculture, pharmaceuticals and information technology.
India ranks among Uzbekistan’s top 10 trading partners. Indian exports include pharmaceuticals, mechanical equipment, vehicle parts, optical instruments and mobile phones, while imports feature fruit and vegetable products, fertilisers, juices and lubricants.
The recent Bilateral Investment Treaty is expected to further boost investor confidence. Officials on both sides expressed optimism that complementary strengths, India’s manufacturing and technology capabilities alongside Uzbekistan’s natural resources and strategic location can help build resilient value chains and expand market access in the years ahead.
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