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India and Uzbekistan deepen ties, eye $5bn trade and long-term uranium supplies

India and Uzbekistan deepen ties, eye $5bn trade and long-term uranium supplies

India and Uzbekistan Elevate Relations to Comprehensive Strategic Partnership, Targeting $5bn in Trade

TASHKENT – During a high-profile state visit to Tashkent, Indian Prime Minister Narendra Modi and Uzbek President Shavkat Mirziyoyev have formally upgraded bilateral ties to a “Comprehensive Strategic Partnership.” The move signals a major deepening of cooperation, with the two nations setting an ambitious goal to increase bilateral trade to $5 billion by 2030.

The visit, which marks 15 years of formal strategic partnership, saw both leaders commit to expanding collaboration across critical sectors, including energy, defense, digital infrastructure, and education.

Bolstering Energy and Mineral Security

A key highlight of the talks centered on energy, with India indicating that a new long-term uranium supply agreement is imminent. India, which aims to expand its civilian nuclear capacity to 100 GW by 2047, relies on steady uranium imports to fuel its reactors under International Atomic Energy Agency (IAEA) safeguards.

While the two nations already operate under a 2019 contract that has delivered 600 metric tonnes of natural uranium to India to date, the new memorandum on mining and geological resources is expected to secure future supply chains for critical minerals.

A Roadmap for Economic Growth

Reflecting on recent progress, President Mirziyoyev noted that bilateral trade surged by 33% last year to $1.3 billion. To sustain this momentum, the two governments have pledged to remove non-tariff barriers and enhance market access. A dedicated working group will now examine the feasibility of a potential Uzbekistan-India Preferential Trade Agreement to streamline manufacturing and supply-chain integration.

In a move to facilitate easier commerce and travel, a new commercial agreement was signed between India’s NPCI International Payments Limited and Uzbekistan’s National Interbank Processing Centre. Once implemented, this will allow Indian travelers to utilize UPI-enabled payment apps within Uzbekistan—a rollout officials anticipate within the next year.

Defense, Security, and Multilateral Coordination

The partnership also formalizes a closer security relationship. Beyond the existing “Dustlik” joint military exercises, the leaders announced new avenues for defense industrial cooperation. Both nations reaffirmed a “zero-tolerance” policy toward terrorism, pledging to intensify intelligence-sharing and law enforcement collaboration.

On the international stage, Uzbekistan reiterated its support for India’s bid for a permanent seat on a reformed UN Security Council. Furthermore, the leaders committed to closer coordination within the Shanghai Cooperation Organisation (SCO) to advocate for the interests of the Global South.

Strengthening People-to-People Ties

The cultural and educational exchange remains a cornerstone of the bilateral relationship. With approximately 16,000 Indian students already studying in Uzbekistan—the majority in the medical field—India announced 100 new scholarships for Uzbek students to study Hindi. Tourism is also slated for a boost, supported by a 30-day visa-free regime and 14 weekly flights between the two countries.

During the visit, Prime Minister Modi was bestowed with the Oliy Darajali Do’stlik Order, Uzbekistan’s highest honor for foreign dignitaries.

“A stronger India-Uzbekistan partnership will be a powerful force for peace, progress and prosperity in Central Asia,” Prime Minister Modi said as he concluded his fourth state visit to the country. The establishment of a new foreign minister-level mechanism will now ensure that these ambitious diplomatic and economic goals are met with consistent, high-level oversight.

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