BRICS to aid India-Uzbekistan bonhomie — Daryo News

BRICS to aid India-Uzbekistan bonhomie

Uzbekistan is steadily advancing its cooperation with BRICS nations. Intergovernmental commissions have been formed with most BRICS members to define trade, economic, and investment agendas, and to create practical strategies for boosting trade volumes and mutual investment. Regular business and regional forums help strengthen ties between business communities and regions.

Collaborative efforts and support for initiatives within international organizations, especially the UN, have been established, while cultural and sports exchanges are also gaining momentum. Trade and economic partnerships with BRICS countries are flourishing. Notably, investment funds with Russia and the UAE serve as key tools for financing major joint ventures. Trade between Uzbekistan and Russia grew from $4.7bn in 2017 to $9.9bn in 2023, while bilateral trade with the UAE reached $626mn in 2023, marking a 21% y/y increase.

In Uzbekistan, over 320 enterprises with UAE investment are operational, and 37 projects worth $14.8bn are underway. Meanwhile, the investment portfolio with Russia includes 278 projects valued at over $40bn, with 3,044 Russian-capital enterprises currently active in the country.

India was one of the first nations to recognise Uzbekistan’s independence, positioning itself as a key partner. Since 1992, the two countries have held 12 high-level meetings, resulting in 98 agreements worth $2.3bn. Their relationship has evolved into a strategic partnership. Cooperation groups involving both the upper and lower houses of the Indian Parliament and the Uzbek Parliament have been established. Additionally, political consultations are ongoing between the two countries’ Foreign Ministries, and an India-Central Asia dialogue, which includes Afghanistan, has been initiated at the foreign minister level.

The countries focus on strengthening trade, economic, and investment ties, with mutual Most-Favoured-Nation (MFN) treatment in place. A joint Intergovernmental Commission on Trade, Economic, Scientific, and Technical Cooperation has been formed. The Uzbek-Indian Trade House in Delhi and the Uzbek-Indian Center for Entrepreneurship Development in Tashkent serve as pillars of this cooperation. Currently, 311 Indian-invested enterprises are active in Uzbekistan, with 42 new entities established in 2024.

The Uzbek-Indian Business Council and a bilateral committee on project implementation are playing active roles. As a result, trade turnover reached $756.5mn in 2023, growing by 9.4%. From January to August 2023, the figure rose to $585.3mn, a 31% increase. Indian direct investment during the first seven months of this year increased by 12% compared to the previous year. Investment is concentrated in sectors like medical centres, mining, construction materials, IT, and light industry.

India is providing financial and technical assistance for infrastructure projects in Uzbekistan, with Exim Bank of India offering nearly $500mn in credit. Cultural and historical ties between the countries remain strong, fostered by institutions such as the Uzbek-Indian Friendship Society. India’s excellence in IT and education has also led to the establishment of branches of Indian universities in Uzbekistan, including Amity, Sambram, Acharya, and Sharda Universities, which specialise in technology and business.

Tourism between the two nations has seen substantial growth, with Indian visitors to Uzbekistan increasing from 4,834 in 2020 to over 45,000 in 2023. The legal framework for Uzbek-Indian cooperation includes 117 agreements across various levels. Uzbekistan’s engagement in the BRICS Plus format aligns with its balanced foreign policy, offering expanded opportunities for dialogue and joint initiatives with India, further boosting their bilateral ties.

Uzbekistan and Turkmenistan have shown interest in joining the International North-South Transport Corridor (INSTC) to enhance trade with India, viewing it as a key route to the Indian Ocean region. This move comes ahead of the BRICS Summit in Kazan, which will focus on promoting inclusive connectivity corridors.

Uzbekistan is particularly eager to tap into the full potential of the INSTC and the Chabahar Port, following the signing of a Bilateral Investment Treaty (BIT) in Tashkent during Finance Minister Nirmala Sitharaman’s recent visit. Uzbekistan has also recently dispatched its first cargo to India via the INSTC.

Each year, BRICS is steadily evolving into a more effective platform for fostering mutually advantageous partnerships among its member nations. The organization operates through annual summits where national leaders explore ways to boost economic growth, ensure social stability, and enhance their collective influence on the global stage.

Key areas of international collaboration include political and security relations, which are shaped during meetings of foreign ministers and security advisors from the BRICS countries. In addition, cooperation extends to the economy, foreign trade, finance, and industry, where officials from trade, economic, financial, and fiscal ministries convene. Cultural collaboration, focusing on the potential for joint efforts in science and culture, is another important aspect of BRICS’ agenda.

Written by: Dr. Chandan Kumar, Assistant Professor at University of Delhi

Follow Daryo’s official Instagram and Twitter pages to keep current on world news.

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}