Why In News?

Prime Minister Narendra Modi and President Shavkat Mirziyoyev held bilateral summit talks in Tashkent, elevating bilateral relations to a Comprehensive Strategic Partnership with a $5-billion trade target, long-term uranium pact, and Digital Public Infrastructure (DPI) integration.

Highlights of Recent bilateral Meeting 

Elevation of Ties: The bilateral relationship was officially upgraded from a "Strategic Partnership" to a Comprehensive Strategic Partnership, reflecting deeper institutional trust.

Uzbekistan's Highest Honour: Prime Minister Modi was conferred with the Order of Dostlik (Order of Friendship), Uzbekistan’s highest state honour, signaling Tashkent's prioritization of India in its "Open Door" foreign policy.

Long-Term Uranium Supply: A foundational framework was established for the long-term procurement of Uranium from Uzbekistan. 

Critical Minerals MoU: India’s Ministry of Mines and Uzbekistan's Ministry of Mining Industry and Geology signed an agreement to jointly explore and process critical minerals (copper, gold, lithium, and rare earth elements).

Ambitious Trade Targets: Leaders set a target of $5 billion in annual trade by 2030.

Urban Infrastructure Partnership: India invited Uzbekistan to collaborate on smart city frameworks, establishing an institutional link between Uzbekistan's New Tashkent project and India's GIFT City (Gujarat).

Buddhist Heritage Conservation: A Letter of Intent was signed to collaborate on the restoration of the ancient Buddhist sites of Fayaz Tepa and Kara Tepa in Termez.

Traditional Medicine: Pacts were signed to integrate Ayurveda and traditional Indian medicine systems into Uzbekistan's healthcare frameworks.

11 Core Pacts: In total, 11 institutional agreements were signed, covering environmental protection, climate action, and cultural heritage conservation.

Evolution of India-Uzbekistan Relations

Ancient Silk Road & Civilisational Symbiosis: Historical links rooted in the transmission of Buddhism from northern India to Central Asia (monasteries in Termez and Dalverzin-Tepe), Sogdian trading networks, Babur’s origins in the Fergana Valley, and the flourishing of medieval astronomical scholarship under Ulugh Beg.

The Tashkent Declaration (1966): Independent India's deep diplomatic association with Tashkent was marked by the signing of the historic Tashkent Agreement mediated by the Soviet Union following the 1965 Indo-Pakistan war, where Prime Minister Lal Bahadur Shastri breathed his last.

Post-Soviet Recognition (1991–1992): India was among the first countries to recognize the independence of the Republic of Uzbekistan in December 1991, establishing its resident Embassy in Tashkent in 1992.

Strategic Partnership Elevation (2011): Formally upgraded ties to a Strategic Partnership in May 2011 during the visit of President Islam Karimov to New Delhi, establishing regular institutional dialogues.

High-Level Summits (2015–2026): Prime Minister Modi visited Tashkent in 2015 and 2016 (SCO Summit); in August 2026, both nations upgraded the relationship to a Comprehensive Strategic Partnership.

Uzbekistan

  • Double-Landlocked Status: Uzbekistan is one of only two doubly-landlocked countries globally.  Another doubly landlocked country is Liechtenstein.

    • A doubly landlocked country is a landlocked nation that is entirely surrounded by other landlocked countries.

  • Rivers & Deserts: Key waterways include the Amu Darya and Syr Darya rivers. The geography features the Kyzylkum Desert, Ustyurt Plateau, and the severe Aral Sea crisis leading to the Aralkum Desert. High elevations culminate in the Tien Shan and Gissar ranges.  

  • Oases: The Fergana and Zeravshan valleys support population centers and historic Silk Road routes.  

 

Strategic Significance of Uzbekistan for India

Heartland of Central Asia: Centrally located in Eurasia and bordering all four other Central Asian Republics (Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan) and Afghanistan, Uzbekistan is the natural pivot for India's Extended Neighbourhood Policy.

Critical Nuclear Energy Security (Uranium Supply): Uzbekistan ranks among the world's top-10 producers of uranium; Navoi Mining supplies over 2,000 metric tonnes of natural uranium ore concentrate to India's Department of Atomic Energy (DAE) to fuel civilian nuclear reactors under International Atomic Energy Agency (IAEA) safeguards.

Untapped Critical Minerals Reserves: Holds substantial unexploited deposits of lithium, copper, molybdenum, tungsten, gold, and rare earth elements (REEs) vital for India's National Semiconductor Mission and electric vehicle (EV) battery manufacturing.

Anchor for Counter-Terrorism in Eurasia: Hosts the Permanent Executive Committee of the Shanghai Cooperation Organisation (SCO) Regional Anti-Terrorist Structure (RATS) in Tashkent, serving as India's primary platform for regional intelligence sharing against Al-Qaeda, IS-KP, and cross-border narco-trafficking.

Transit Bridge to Afghanistan and International North South Transport Corridor (INSTC): Uzbekistan operates the Termez logistics cargo hub and champions the Trans-Afghan Railway project (Termez–Mazar-i-Sharif–Kabul–Peshawar/Chabahar), offering India alternative overland access to Eurasian markets.

India's Policy Towards Uzbekistan

Extended Neighbourhood & "Connect Central Asia" Framework: Anchored in the 4Cs—Commerce, Connectivity, Consular, and Community—treating Tashkent as a foundational regional economic partner.

Digital Public Infrastructure (DPI) Diplomacy: Promoting sovereign technology sharing by deploying UPI-compatible payment interfaces, digital health registries, and cyber-defense architectures in Uzbekistan.

Concessional Lines of Credit (LoC): Extended a $448-million Line of Credit through the EXIM Bank of India for clean water supply, rural infrastructure, IT education, and health projects across Uzbek provinces.

Constructive Multilateral Engagement: Cooperating closely in the India-Central Asia Dialogue (at the level of Foreign Ministers and Heads of State), the Shanghai Cooperation Organisation (SCO), and United Nations forums.

Support for Multi-Vector Autonomy: Backing Uzbekistan’s foreign policy orientation of non-alignment and strategic autonomy, preventing exclusive single-power domination of Central Asia.

Areas of Cooperation

Economic, Trade & Investment Architecture

  • Bilateral trade reached $1.3 billion in 2025. Heavily tilted toward Indian exports ($1.15 billion vs Uzbek exports of $164.6 million).

    • Future Goal: Fivefold increase to $5 billion by 2030.

  • Implemented the Bilateral Investment Treaty (BIT) to provide statutory investor protection, reciprocal asset security, and transparent dispute settlement for private Indian enterprises.

Defence, Counter-Terrorism & Joint Exercises:

  • Annual conduct of the joint army combat exercise Ex-DUSTLIK, focusing on counter-terrorism operations in mountainous and semi-urban terrain.

  • Co-development of defense electronics, military communications, and specialized training of Uzbek armed forces officers at the National Defence College (NDC) in New Delhi.

Pharmaceuticals & Healthcare Clusters:

  • Indian generic pharmaceuticals account for over 30% of the Uzbek retail medicine market.

  • Indian pharmaceutical conglomerates have invested over $100 million in setting up manufacturing plants in the Andijan Free Economic Zone (Pharma Park).

  • Top Indian hospital chains (Medanta, Fortis, Apollo) operate specialized diagnostic hubs and tele-medicine centres in Tashkent and Samarkand.

Education, Higher Learning & Skill Development:

  • Indian universities operate flourishing offshore campuses in Uzbekistan:Amity University in Tashkent, Sharda University in Andija, and Sambhram University in Jizzakh, educating over 10,000 local students.

  • The Jawaharlal Nehru India-Uzbekistan Centre for Information Technology in Tashkent upgrades technical skills under the Indian Technical and Economic Cooperation (ITEC) programme.

Space Science, Agritech & Energy: Joint satellite data sharing for agricultural drought monitoring, cotton yield optimization, and solar park grid integration.

What are the Challenges in India-Uzbekistan Relations?

Physical Connectivity Deficit & Transit Bottlenecks: Being a doubly landlocked country surrounded exclusively by landlocked neighbors, Uzbekistan lacks direct maritime access; Pakistan's refusal of overland transit rights forces trade to detour through Iran's Chabahar port.

Sanctions Vulnerability on Iranian and Russian Corridors: Western secondary sanctions on Iranian banking systems and regional shipping routes create compliance hurdles for Indian freight forwarders using the INSTC.

Asymmetric Chinese Economic Presence: China's bilateral trade with Uzbekistan exceeds $14 billion, backed by massive Belt and Road Initiative (BRI) infrastructure loans and direct energy pipeline links that far outpace Indian commercial investments.

Non-Convertibility of Currencies & Banking Delays: Absence of direct Rupee-Som currency swap mechanisms or local bank branch linkages forces reliance on third-country intermediary clearing banks.

Inadequate Air Cargo and Direct Passenger Connectivity: Limited flight frequencies between Indian tier-1 cities and Tashkent/Samarkand constrain high-value perishable goods and tourism.

Way Forward for Strengthening India-Uzbekistan Relations

Operationalise Special Rupee Vostro Accounts (SRVA) for Bilateral Trade: Establish direct local currency settlement mechanisms between the Reserve Bank of India (RBI) and the Central Bank of Uzbekistan to bypass US dollar conversion costs and eliminate Western sanctions risks.

Accelerate Joint Critical Minerals Exploration via KABIL: Deploy state capital through Khanij Bidesh India Limited to secure equity stakes in Uzbek lithium, copper, and tungsten processing facilities.

Integrate Uzbekistan with the Chabahar-INSTC Multimodal Grid: Offer subsidized port tariffs and dedicated container freight trains connecting Shahid Beheshti port in Iran directly to the Termez cargo logistics terminal in southern Uzbekistan.

Establish an India-Uzbekistan Joint Venture Investment Fund: Create a dedicated $500-million sovereign co-investment fund to finance Indian MSMEs setting up agro-processing, textile, and pharmaceutical units in Uzbek Special Economic Zones.

Deploy India Stack and UPI Across Uzbek Commercial Banking: Fast-track the technical integration of India's Unified Payments Interface with Uzbekistan's National Payment System (UZCARD/HUMO) to facilitate cross-border remittances and trade transactions.

Expand Subsidized Air Freight Corridors and Tourism Hubs: Establish weekly dedicated cargo flights between Delhi, Mumbai, and Tashkent to boost exports of high-value Indian generic drugs, electronics, and surgical instruments.

Deepen Regional Security Coordination via SCO-RATS: Enhance real-time intelligence sharing, cyber-defense training, and counter-drone capabilities to insulate the Central Asian heartland from cross-border extremism.

Conclusion

Elevating ties with Uzbekistan to a Comprehensive Strategic Partnership anchors India's continental strategy in Eurasia, transforming historical civilisational goodwill into tangible security, critical mineral resilience, and digital connectivity.

Source: THEHINDU

PRACTICE QUESTION

Q. With reference to the bilateral relations between India and Uzbekistan, consider the following statements:

1. Uzbekistan is a doubly landlocked country bordered entirely by other landlocked countries in Central Asia.

2. Exercise DUSTLIK is an annual joint military training exercise conducted between the armies of India and Uzbekistan.

3. The Permanent Executive Committee of the Regional Anti-Terrorist Structure (RATS) of the Shanghai Cooperation Organisation (SCO) is headquartered in Tashkent.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2, and 3

Answer: (d) 1, 2, and 3

Explanation:  

Statement 1 is correct: Uzbekistan is one of only two doubly landlocked countries in the world (the other being Liechtenstein). This means that it is a landlocked nation entirely surrounded by other landlocked nations (Kazakhstan, Kyrgyzstan, Tajikistan, Afghanistan, and Turkmenistan). 

Statement 2 is correct: Exercise DUSTLIK is a joint military training exercise conducted between the armies of India and Uzbekistan. It focuses on counter-terrorism and multi-domain operations, alternating annually between both countries.  

Statement 3 is correct: The Permanent Executive Committee of the Regional Anti-Terrorist Structure (RATS), which is a specialized, permanent organ of the Shanghai Cooperation Organisation (SCO), is permanently headquartered in Tashkent, Uzbekistan.