India, Uzbekistan target doubling bilateral trade in three years
New Delhi: India and Uzbekistan are looking to more than bilateral trade to about $3 billion over the next three years, with commerce and industry
New Delhi: India and Uzbekistan are looking to more than bilateral trade to about $3 billion over the next three years, with commerce and industry minister Piyush Goyal on Monday saying the two countries could also explore a free trade agreement (FTA) as they deepen economic ties. The renewed push comes as both countries seek to diversify economic ties beyond traditional sectors, with Uzbekistan inviting Indian companies to expand investments in mining, metallurgy, chemicals, energy, pharmaceuticals, automobiles and digital infrastructure. Both sides also agreed to work towards easing market access and reducing trade barriers. Addressing the India-Uzbekistan Business Forum in New Delhi, Goyal said trade would have to "lead from the front" in strengthening bilateral relations and urged businesses to seize opportunities for long-term partnerships. Also Read | Flux in global trade demands more than just signing free trade agreements Goyal said that though bilateral trade has crossed around $1.5 billion, it still represents only a fraction of the potential between the two economies.
Regarding the possibility of negotiating a free trade agreement, the minister said India and Uzbekistan could look at moving beyond the existing framework to facilitate greater trade and investment flows. Although no formal negotiations have been announced, the proposal reflects growing interest in building a more comprehensive economic partnership. Laziz Kudratov, Uzbekistan's minister of investment, industry and trade, said bilateral trade grew by 30% last year, surpassing $1.3 billion for the first time. "We hope to reach $2 billion by next year, and we should work to increase our trade to $3-5 billion in the coming years," Kudratov said. He added that both governments were working to improve market access, streamline procedures and reduce administrative barriers to facilitate trade. The two countries are also working on a trade facilitation agreement and related memoranda to create more favourable conditions for exporters and importers, Kudratov said. He said Uzbekistan offers significant potential in mining and metallurgy, chemicals, energy, digital infrastructure, automobiles and pharmaceuticals, and reiterated the country's interest in attracting greater Indian investment in these sectors.
"Uzbekistan is open for foreign businesses. The number of foreign companies has increased fivefold and foreign direct investment has grown tenfold since 2017," he said. The trade push follows the conclusion of the India-Uzbekistan Bilateral Investment Treaty (BIT), which Goyal said would strengthen investor confidence and encourage businesses from both countries to make long-term investments. Inviting companies to "co-invest, co-manufacture and co-innovate," Goyal identified mining as one of the most promising sectors for bilateral collaboration. The emphasis assumes greater significance as countries seek to diversify supply chains for critical minerals and rare earth elements, which are increasingly vital for electric vehicles, clean energy technologies and electronics manufacturing. The minister also highlighted opportunities in textiles by leveraging Uzbekistan's cotton production and India's strengths in textile manufacturing and garment exports. In pharmaceuticals and healthcare, he said India could support Uzbekistan through affordable medicines, medical devices, diagnostics, telemedicine and healthcare training, while also proposing renewed cooperation in traditional systems of medicine, including Ayurveda, Yoga and Unani.
The BriefWire