News Highlights
The Union Minister for Commerce & Industry has termed India-Uzbekistan relations as key to India’s vision of an integrated extended neighbourhood.
Key news takeaways:
- The year 2022 is special for India-Uzbekistan relations as both nations are celebrating their 30th year of diplomatic relations.
- The minister mentioned that trade has increased from $247 million in 2019-20 to $342 million in 2021-22, a growth of 38.5%.
India-Uzbekistan Relations
- India was one of the first countries to recognize the state sovereignty of Uzbekistan after the latter’s independence.
- The protocol for establishing diplomatic relations between India and Uzbekistan was signed in Tashkent in 1992.
- Bilateral Trade and Investments:
- Bilateral trade at about USD 442 million in 2020.
- The major items of India’s exports are pharmaceutical products, mechanical equipment, vehicle parts, services, optical instruments and equipment.
- India’s imports from Uzbekistan consist mainly of fruit and vegetable products, services, fertilisers, juice products and extracts, and lubricants.
- Security Cooperation:
- India and Uzbekistan share common perspectives on several security issues, including terrorism, trans-national organised crime, illegal trafficking and smuggling, etc.
- Defence Cooperation:
- India-Uzbekistan Joint Military Exercise- ‘Dustlik’ conducted in March 2022.
- The joint India-Uzbekistan focus was on counter-terrorism operations in semi-urban terrain.
- India has also assisted in setting up an India Room at the Armed Forces Academy of Uzbekistan in Tashkent.
- Bilateral and Multilateral Mechanisms:
- India and Uzbekistan have set up National Coordination Committees to oversee the implementation of mutually agreed projects and initiatives.
- The India-Central Asia Dialogue is a ministerial-level dialogue between India and the Central Asian countries, namely Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan.
- India-Central Asia Summit:
- At the initiative of the Prime Minister of India, the Presidents of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan attended the first India-Central Asia Summit in January 2022.
Issues and Challenges of India-Uzbekistan relations:
- Geographical limitedness:
- India’s unfriendly neighborhood and topographical challenges create a big gap between India and Uzbekistan.
- It triggered lower trade and other relationships.
- China’s dramatic rise:
- China asserts profound influence in the Central Asian regions.
- Moreover, Russia’s differences with the West have brought China and Russia closer.
- Untapped economic potential:
- The volume of trade and investment between Uzbekistan and India does not correspond to the potential of both countries.
- Political turmoil in the neighborhood
- The illegitimate government and political instability in neighboring Afghanistan pose a challenge to India’s investment in Uzbekistan.
Way forward:
- Overcoming the geographic limitations:
- The fast operationalisation of the International North–South Transport Corridor (INSTC) would enhance connectivity to Central Asian regions.
- The INSTC is a multi-mode network of ship, rail, and road routes for moving freight between India, Iran, Azerbaijan, Russia, Central Asia and Europe.
- Expanding economic relations:
- Expanding cooperation in areas such as information technology, programming, automobile industry, metallurgy, pharmaceutics, chemical, light industry, banking system etc.
Content Source: PIB
Image Curtesy: Times of India.