India and Uzbekistan deepen ties, eye $5bn trade and long-term uranium supplies

India and Uzbekistan have elevated their diplomatic relationship to a Comprehensive Strategic Partnership, aiming to boost bilateral trade to $5 billion by 2030 and secure long-term uranium supplies. During Prime Minister Narendra Modi's state visit to Tashkent, both nations outlined ambitious goals for economic collaboration, energy security, and strategic alignment. The visit marked a significant step in strengthening ties between the two countries, with key outcomes spanning trade, defense, and cultural exchanges. The summit resulted in several agreements, including a commitment to increase trade volume from $1.3 billion in 2025 to $5 billion by 2030. President Shavkat Mirziyoyev noted that bilateral trade grew by 33% over the previous year, highlighting the potential for further expansion. To facilitate this growth, the two governments plan to form a working group focused on addressing trade and investment barriers. Additionally, they will conduct a feasibility study to explore the possibility of establishing a Preferential Trade Agreement. Efforts to streamline cross-border commerce include enhancing multimodal transport routes to reduce freight costs between India and Uzbekistan, a landlocked nation. Innovations in digital finance were another notable outcome. An agreement between India’s National Payments Corporation of India (NPCI) and Uzbekistan’s National Interbank Processing Centre will enable Indian travelers to use Unified Payment Interface (UPI)-enabled apps in Uzbekistan. This initiative is expected to roll out within approximately one year. The move reflects broader efforts to integrate financial systems and enhance convenience for citizens traveling between the two countries. Cooperation in critical minerals, particularly uranium, has also gained momentum. India currently imports uranium from Uzbekistan under a 2019 contract, which covers 1,100 metric tonnes of natural uranium concentrate for delivery through 2026. As of March 2025, India had received 600 metric tonnes under the agreement. The country relies on these imports to fuel its civilian nuclear reactors, which are subject to International Atomic Energy Agency safeguards. With plans to expand nuclear generating capacity to 100 gigawatts by 2047, securing stable uranium supplies becomes increasingly vital. Defense and security cooperation were also emphasized. Both nations agreed to elevate their defense industry collaboration and continue joint military exercises such as Dustlik. They reaffirmed a shared stance against terrorism and committed to improving intelligence sharing and law enforcement coordination. On international platforms, Uzbekistan expressed support for India’s aspirations for permanent membership in a reformed United Nations Security Council. The two countries also pledged stronger coordination within the Shanghai Cooperation Organisation and on matters affecting the Global South. Cultural and educational ties were strengthened through initiatives promoting student exchange and academic collaboration. Four Indian universities operate in Uzbekistan, and approximately 16,000 Indian students, primarily pursuing medical degrees, are enrolled in the country. India announced 100 scholarships for Uzbek students studying Hindi, underscoring its interest in fostering linguistic and cultural understanding. Modi participated in a yoga session organized by the Yoga Federation of Uzbekistan, reflecting the growing influence of Indian cultural practices abroad. He was also honored with the Oliy Darajali Do‘stlik Order, Uzbekistan’s highest award for foreign leaders. This marks his fourth visit to the Central Asian nation since 2015, signaling a deepening of bilateral engagement.