India, Uzbekistan Upgrade Bilateral Relations, Commit To $5 Billion Trade Target By 2030

India and Uzbekistan on Sunday elevated their bilateral relationship to a Comprehensive Strategic Partnership and set an ambitious target of increasing annual bilateral trade to USD 5 billion by 2030. The decisions were announced after Prime Minister Narendra Modi held talks with Uzbek President Shavkat Mirziyoyev in Tashkent, with both sides seeking to broaden cooperation across trade, defence, energy and emerging technologies. A key outcome of the talks was an agreement to establish a long-term arrangement for uranium supplies from Uzbekistan to India. The agreement is part of expanding cooperation in the civil nuclear energy sector and is expected to support India's efforts to secure reliable nuclear fuel supplies. The two countries also discussed strengthening collaboration in areas linked to energy security and critical minerals.

The discussions between Modi and Mirziyoyev covered a wide range of sectors, including trade and investment, infrastructure, mining, critical minerals, defence and security, agriculture, pharmaceuticals, healthcare and information technology. Cooperation in digital public infrastructure, including India's Unified Payments Interface (UPI), and education was also discussed as both countries look to expand their economic and technological engagement. The two leaders agreed that greater efforts would be needed to raise bilateral commerce from its current level of more than USD 1 billion to the USD 5 billion target by 2030. Modi said India and Uzbekistan would work in a structured manner to address obstacles related to market access, banking arrangements, payment systems and connectivity. Removing such barriers is expected to be important for increasing trade volumes and encouraging greater participation by businesses from both countries.

Modi described Uzbekistan's geographical position as central to India's engagement with the wider Central Asian region. “Uzbekistan is at the heart of Central Asia and is at the heart of India's engagement in the region,” he said, adding that a stronger partnership between the two countries could become a “powerful force for peace, progress and prosperity in Central Asia.” Defence cooperation emerged as another significant component of the discussions. Modi said India and Uzbekistan would encourage their respective defence industries to establish direct linkages and pursue co-development and co-production of military hardware. The approach could provide opportunities for greater industrial cooperation while strengthening defence and security ties between the two countries.

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The two sides also agreed to establish a ministerial-level coordination mechanism to maintain regular oversight of bilateral cooperation and help advance agreements reached between the governments. Such a mechanism is expected to provide a structured platform for monitoring progress across multiple areas and addressing issues that could slow the implementation of bilateral initiatives. The elevation of relations reflects India's broader effort to deepen engagement with Central Asian countries. Uzbekistan occupies an important geographical position in the region and has been a key partner for India in expanding political, economic and strategic cooperation. The new framework gives the relationship a broader institutional basis at a time when both countries are seeking greater connectivity and economic integration.

For Uzbekistan, stronger economic ties with India could create additional opportunities in sectors such as pharmaceuticals, technology, mining, agriculture and investment. For India, closer engagement provides access to Central Asian markets and resources while strengthening its strategic presence in the region. The proposed trade target, if achieved, would represent a substantial increase from the current level of bilateral commerce. The agreements announced in Tashkent therefore extend well beyond a single sector. From long-term uranium supplies and defence manufacturing to digital payments, healthcare and trade connectivity, India and Uzbekistan have outlined a broad agenda for the next phase of their relationship. The elevation to a Comprehensive Strategic Partnership, combined with the USD 5 billion trade target, signals an attempt by both governments to turn their growing political relationship into deeper and more sustained economic and strategic cooperation.

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