India and Uzbekistan aim to raise bilateral trade to $5 billion by 2030. This goal was announced in a joint statement after talks between Prime Minister Narendra Modi and Uzbekistan President Shavkat Mirziyoyev. The announcement came during Modi's two-day visit to Tashkent. Both leaders stressed the need to expand the range of goods traded and to eliminate non-tariff barriers.
Key Details
The two countries will set up a joint working group to tackle investment challenges and non-tariff issues. They also instructed relevant ministries to look into the next steps for a proposed Uzbekistan-India Preferential Trade Agreement. This follows a joint feasibility study. Bilateral trade reached $1.3 billion in 2025, a 33.3% increase from the previous year, according to the commerce ministry.
Uzbekistan will adopt India's Unified Payment Interface (UPI) system. This will improve digital payment capabilities between the two countries. The rollout is part of a larger effort to expand India's digital infrastructure globally. A commercial agreement was signed between NPCI International Payments Ltd and Uzbekistan's National Interbank Processing Centre. This will allow UPI transactions using local QR codes.
Background
The two nations also signed 11 agreements in various sectors, including trade, investment, infrastructure, and critical minerals. Modi said, "A stronger India-Uzbekistan partnership will be a powerful force for peace, progress, and prosperity in Central Asia." Both countries plan to enhance cooperation in e-commerce and digital trade procedures, especially for small and medium-sized enterprises.
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These developments may boost sectors like digital payments and trade logistics. Companies involved in e-commerce and infrastructure could benefit. Increased bilateral trade may lead to higher demand for Indian goods and services in Uzbekistan. Watch for more details on the UPI system's implementation and the proposed Preferential Trade Agreement's outcomes.
Based on reporting by: livemint.com