Less than a week after India hosted the India Central Asia Business Meeting in Delhi, a large entourage of Indian companies was attending the fourth Tashkent International Investment Forum (TIIF). The delegations included those from Confederation of Indian Industries (CII), Indo Rama, WAPCOS and L&T, amongst others.
“CII’s delegation to Uzbekistan represented important sectors like mining and infrastructure consultancy, which took part in the fourth TIIF,” informed a CII spokesperson. “The overarching message during all the engagements was that this was the right time to invest in Uzbekistan, with opportunities existing across sectors”.
At present, the total Indian investments in Uzbekistan amount to $325 million and the trend is showing an upward trajectory. The total trade for 2024-25 was worth $532.41, million, with balance of trade in India’s favour.
“The relationship between India and Uzbekistan is on an upward trajectory,” India’s Ambassador to Tashkent, Smita Pant, told Business India. “Our foreign ministers met in Delhi a few weeks back and there is scope of expanding our partnership in rare earth minerals, textiles, pharmaceuticals, AI, as well as gems & jewellery”.
The talks between the two teams have led to India setting up a UPI facility in Uzbekistan, for which high-level delegations from the banking sector of the two nations will meet later this month. “The tally of Indians visiting here is on the increase,” ambassador Pant added. “Last year, close to 90,000 Indians visited the country. This is likely to go up to over 100,000 this year. There are over 12,000 Indian students in Uzbekistan (mostly studying medicine here) and their contribution touches $70 million annually”.
The Indian companies that have made investments include educational institutions, as well as the agriculture and pharma sectors. “We have invested in textiles, farming, chemicals and fertilisers,” Prakash Kejriwal, group director, Indo Rama, told Business India. “We have been here since 2010. TIIF is assuming importance, with more and more serious investors coming and FDI increasing. We are manufacturing here and have a workforce of 10,000 working for us”.
If trade were through Chabahar port, there would have been a substantial increase in the two-way movement of goods
“For over 20 years, Shayana Farm group of companies has been the leading manufacturer of pharmaceuticals, compliant with global standards in Uzbekistan,” said Ashok Kumar Tiwary, owner, Shayana Farm group of companies. “We have been exporting from here to other parts of the world too”.
A major hub
In recent years, bilateral ties have improved between the two countries, with high-level visits, including Prime Minister Narendra Modi to Tashkent in July 2015 and June 2016 and President Shavkat Mirziyoyev to India in October 2018 and in January 2019. “After the Ukraine crisis, Uzbekistan has become a major hub for Indian medical students. India is among the top 10 trade partners of Uzbekistan, with bilateral trade touching $756.60 million in 2023 (Uzbek statistics). Exports from India include pharmaceutical products, mechanical equipment, vehicle parts, services, frozen meat, optical instruments and equipment, mobile phones, cosmetics, plastics, textiles (fabrics, knit wear, synthetic yarns, etc), ferrous metals, rubber, ceramics and copper, as also and products from them, informs CII.
“If trade were through Chabahar port, there would have been a substantial increase in the two-way movement of goods,” remarked Ambassador Pant. “India imports fruits and vegetables, services, fertilisers, juice products and extracts, base metals, etc”.
In September 2024, India and Uzbekistan signed a bilateral investment treaty to enhance economic cooperation and create a more robust investment environment. “The total Indian investments in Uzbekistan amount to about $325 million,” says CII. “Investments by Indian companies include pharmaceuticals, healthcare, education and residential buildings. Some 317 enterprises have opened their units in Uzbekistan with Indian capital participation until August 2024”.
Indian majors like GMR have expressed interest in investment in airports, as also development of air corridor and the Navoi cargo complex in Uzbekistan. KDAH (Ambani Hospital) from Mumbai too, has shown interest in setting up a speciality hospital there.
During the visit of Bhupendra Patel, CM, Gujarat, an investment of $50 million was announced by Cadila, which would include healthcare, agriculture and food processing. The Uzbek government has pledged support by offering 50,000 hectares of land for setting up a facility in the agro-processing sector.
Indian universities – like Amity University and Sharda University – have opened campuses in Tashkent and Andijan, respectively. NTPC is also participating in various tenders, including solar PV power plants and consultancy assignments for gas projects in Uzbekistan.