India–Uzbekistan Relations: Strategic to Comprehensive Strategic Partnership

Subject: Paper 2: International Relations 

Context: Recently, during Prime Minister Narendra Modi’s visit to Uzbekistan, India and Uzbekistan elevated their 15-year Strategic Partnership to a Comprehensive Strategic Partnership.

• Uzbekistan conferred the ‘Oliy Darajali Do’stlik’ Order on Prime Minister Narendra Modi during his two-day state visit to Tashkent.

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About India–Uzbekistan Relations

• Historical ties: India–Uzbekistan relations have deep historical roots, shaped by centuries of trade, cultural exchange, and people-to-people contact along the Silk Routes. 
• Early recognition: India was among the first countries to recognise Uzbekistan’s sovereignty after its independence in 1991.
• Diplomatic relations: The Protocol on the Establishment of Diplomatic Relations was signed in Tashkent on 18 March 1992, formally establishing diplomatic ties. 
• Strategic Partnership: India and Uzbekistan elevated their relationship to a Strategic Partnership in 2011.
• Trade: India is among the top 10 trade partners of Uzbekistan, with bilateral trade of USD 1.32 billion.
  • India’s major exports: Pharmaceuticals, mechanical equipment, vehicle parts, services, frozen buffalo meat, optical instruments and equipment, and mobile phones.
  • India’s major imports: Fruits and vegetables, services, fertilizers, juice products and extracts, and lubricants.

Key Outcomes of the India–Uzbekistan Summit

• Trade Target: Both sides aim to increase annual bilateral trade from the current level of over $1 billion to $5 billion by 2030.
• Uranium Supply: Agreed to establish a long-term arrangement for uranium supply from Uzbekistan to India, supporting cooperation in the peaceful uses of nuclear energy.
• Critical Minerals: Cooperation in geological exploration, mining, mineral processing, value-added production and recycling.
• Defense Cooperation: Focus on direct linkages, co-development and co-production of military hardware.
• Digital Payments: NPCI International Payments Limited and Uzbekistan’s National Interbank Processing Center agreed on a framework enabling Indian UPI apps to scan Uzbekistan’s UZQR for merchant payments.
• Institutional Mechanisms:
  • Coordination Council at the Foreign Ministers’ level.
  • The existing Joint Commission was upgraded from the Secretary level to the Ministerial level.
  • Joint India–Uzbekistan Business Summit to strengthen commercial ties.
• Cultural Cooperation: Letter of Intent for restoration and conservation of the Buddhist sites of Fayaz Tepa and Kara Tepa.
  • These ancient Buddhist monasteries in southern Uzbekistan highlight how Buddhism spread along the Silk Road and flourished in Central Asia.
• Environment: India announced a $1 million grant for afforestation in the Aral Sea region.
  • Environmental cooperation reflects convergence between Uzbekistan’s Yashil Makon initiative and India’s Ek Ped Maa Ke Naam initiative.
• Regional Cooperation: 
  • Central Asia: Strengthening the Central Asia–India format as a platform for regional engagement.
  • SCO: Cooperation through the Shanghai Cooperation Organisation on security, trade, investment and humanitarian issues.
  • United Nations: Coordination on UN reform and Security Council reform; Uzbekistan supports India’s candidature for permanent membership of the UNSC.
  • Global initiatives: Cooperation through platforms such as the International Solar Alliance (ISA) and the International Big Cat Alliance (IBCA)

Strategic Significance

• Central Asian Outreach: The partnership strengthens India’s strategic engagement with Central Asia and Uzbekistan’s role as a key regional partner.
• Energy Security: Long-term uranium supply from Uzbekistan helps India diversify its nuclear fuel sources.
• Critical Minerals: Cooperation provides India with access to Uzbekistan’s critical and strategic mineral resources and associated value chains.
• Defense Cooperation: Defense cooperation enables India and Uzbekistan to undertake joint development and production of military equipment.
• Trade and Connectivity: Improved payment, banking and connectivity mechanisms facilitate India’s trade and investment in Central Asia.
• Regional Security: A joint commitment to combating terrorism, extremism, and separatism strengthens regional security cooperation.

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Way Forward

• Strengthen Connectivity: Accelerate Chabahar Port and INSTC to overcome geographical constraints and reduce transport costs.
• Expand Trade: Diversify trade in pharmaceuticals, automobiles, engineering and electrical goods to achieve the $5 billion target by 2030.
• Build Critical-Mineral Value Chains: Promote joint exploration, processing, value addition, and recycling.
• Deepen Defense Cooperation: Move towards co-development and co-production and strengthen joint military cooperation.
• Improve Market Access: Address non-tariff barriers, regulatory issues and banking/payment constraints.
• Ensure Implementation: Effectively use the Foreign Ministers-led Coordination Council and Ministerial-level Joint Commission to monitor agreements and projects.

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