India and Uzbekistan deepen ties, eye $5bn trade and long-term uranium supplies
India and Uzbekistan Deepen Ties: $5bn Trade Target
Poinews.com – When Prime Minister Narendra Modi stepped off his plane in Tashkent for the fourth time, the diplomatic signal was unmistakable: India and Uzbekistan deepen ties to the point of a Comprehensive Strategic Partnership. The state visit produced a dense package of bilateral commitments — spanning critical minerals, defence procurement, cross-border digital payments, and multilateral coordination — that collectively reposition New Delhi's Central Asia footprint while giving Tashkent a credible alternative to its traditional export corridors.
From $1.3 Billion to $5 Billion: The Trade Roadmap
President Shavkat Mirziyoyev opened the economic track by noting that bilateral commerce had surged 33 percent in the prior year to reach $1.3 billion (€1.12 billion). The joint statement then set a joint ambition: lift that figure to $5 billion (€4.29 billion) by 2030. Closing the gap, the document instructs, requires dismantling non-tariff barriers, broadening market-access windows, and weaving tighter manufacturing and supply-chain linkages between the two economies. A dedicated working group will catalogue and resolve remaining trade and investment obstacles, and both capitals will revisit next steps once a feasibility study on a possible Uzbekistan–India Preferential Trade Agreement is completed.
For a landlocked economy still heavily dependent on overland routes through Russia, the transport dimension carries outsized weight. Lowering freight costs between Indian ports and Tashkent — potentially via multimodal corridors through Iran and Afghanistan — would give Uzbekistan genuine logistics alternatives and dovetail with New Delhi's broader connectivity architecture in the region.
Uranium Supply and the Road to 100 GW
The single most consequential outcome of the visit concerns energy security. India's Ministry of External Affairs confirmed that negotiations on a new long-term uranium supply agreement are in their final stages, describing the talks as "positive" and indicating a signature could come "very shortly." A companion memorandum on mining and geological resources, signed during the visit, will underpin broader critical-minerals cooperation with uranium at its centre.
The existing arrangement dates to 2019: a contract for 1,100 metric tonnes of natural uranium concentrate, deliverable through 2026. A parliamentary answer tabled in March 2025 confirmed that 600 metric tonnes had already been received under that deal.
New Delhi plans to scale civilian nuclear generating capacity to 100 gigawatts by 2047 — roughly tripling today's installed base. Every reactor added under International Atomic Energy Agency safeguards demands a reliable, long-duration supply line. Uzbekistan, with its established uranium mining sector, slots directly into that diversification calculus, and the two governments' decision to India and Uzbekistan deepen ties in the energy domain is less a commercial choice than a structural necessity.
UPI Goes Cross-Border; Defence Ties Widen
A concrete consumer-facing deliverable emerged in the payments space. A commercial agreement between India's NPCI International Payments Limited and Uzbekistan's National Interbank Processing Centre will let Indian travellers use UPI-enabled mobile-payment apps across Tashkent and other Uzbek cities, with officials projecting a rollout window of roughly one year. For a country whose outbound tourism to Central Asia has grown steadily, removing the cash-friction point marks digital-infrastructure diplomacy as now-standard fare in bilateral engagement.
The expanded partnership also widens the defence and security envelope. The joint statement identifies fresh avenues for collaboration between the two countries' defence industries, complementing the Dustlik joint military exercise already conducted by their armed forces. Both governments reaffirmed a zero-tolerance stance on terrorism and pledged tighter cooperation in intelligence exchange, law-enforcement coordination, and counter-terrorism operations — language that resonates given the shared borders and transit corridors stitching South and Central Asia together.
Multilateral Alignment and People-to-People Links
On the multilateral stage, Tashkent reiterated its backing for India's bid for a permanent seat on a reformed United Nations Security Council. The two leaders committed to closer coordination within the Shanghai Cooperation Organisation and on issues affecting the Global South, reinforcing a pattern in which New Delhi and Tashkent align their diplomatic postures in international fora. Tourism, education exchanges, and cultural programming round out the people-to-people dimension of the upgraded partnership.
Frequently Asked Questions
What does the $5 billion trade target mean in practice?
It is a joint government-to-government ambition to lift annual bilateral commerce from roughly $1.3 billion to $5 billion by 2030. Achieving it depends on removing non-tariff barriers, expanding market access, and deepening manufacturing supply-chain interdependence — tasks assigned to a dedicated bilateral working group.
When will the new uranium supply agreement be signed?
India's Ministry of External Affairs described the talks as "positive" and indicated a signature could come "very shortly." No fixed date has been announced, but the memorandum on mining and geological resources signed during the visit provides the institutional framework for the deal.
Will Indian mobile-payment apps work in Uzbekistan?
Yes. Under the NPCI International Payments Limited–National Interbank Processing Centre agreement, UPI-enabled apps will function in Tashkent and other Uzbek cities. Officials project a rollout window of approximately one year from the agreement's signing.
How does this partnership affect India's nuclear energy plans?
India targets 100 GW of civilian nuclear capacity by 2047. The new long-term uranium supply agreement would add a second, diversified source beyond the existing 2019 contract (1,100 metric tonnes through 2026), reducing dependence on any single supplier and supporting the buildout under IAEA safeguards.