Tashkent [Uzbekistan], August 30 : India and Uzbekistan on Sunday agreed to move towards a Preferential Trade Agreement and to set up a Joint Working Group to address non-tariff issues and investment barriers as the two countries seek to significantly expand bilateral trade and investment.
Setting an ambitious economic roadmap, the two sides have set a target of increasing bilateral trade to USD 5 billion by 2030, from the current level of more than USD 1 billion, with a focus on expanding market access, improving connectivity and strengthening banking and payment channels.
Addressing a joint press statement with Uzbek President Shavkat Mirziyoyev in Tashkent, Prime Minister Narendra Modi said trade expansion would remain at the centre of the bilateral economic agenda.
"This year marks 15 years of our strategic partnership. On this special occasion, we have decided to elevate our relations to a 'Comprehensive Strategic Partnership'. We have prepared an ambitious agenda to move forward with speed. Our bilateral trade has crossed USD 1 billion, and we have now set a target of USD 5 billion by 2030. To achieve this, we will systematically move forward on market access, connectivity, and banking," PM Modi said.
The joint statement issued during PM Modi's state visit to Uzbekistan said that the two sides agreed to undertake joint measures to broaden the range of goods traded between the countries, remove non-tariff barriers and promote industrial cooperation to further increase bilateral trade turnover.
"Both sides agreed to undertake joint measures to broaden the range of goods traded between the two countries, remove non-tariff barriers, and promote industrial cooperation with a view to further increasing bilateral trade turnover," the statement said.
As part of the effort, India and Uzbekistan decided to create a Joint Working Group to address non-tariff issues and investment barriers, particularly in key sectors of bilateral trade.
The two countries also recalled the conclusion of the Joint Feasibility Study on the Uzbekistan-India Preferential Trade Agreement and directed their relevant ministries to explore the next steps on a time-bound basis.
"The two Leaders expressed satisfaction at the steady growth of bilateral trade and reaffirmed their resolve to further expand and diversify trade, with the aim of building a stronger trade relationship," the Joint Statement said.
The leaders also agreed to support efforts aimed at strengthening manufacturing and export capacities and to promote dialogue among regulators. They will explore mutual recognition arrangements to facilitate faster and greater market access in each other's markets.
India and Uzbekistan also expressed interest in strengthening cooperation in e-commerce, digitalisation of trade procedures and digital platforms for small and medium-sized enterprises, with the aim of facilitating bilateral trade.
The Uzbek side appreciated India's support for Uzbekistan's accession to the World Trade Organisation (WTO), while both sides agreed to work together to preserve and protect the multilateral trading system with the WTO at its core, particularly in the interests of developing countries.
The two leaders also agreed to promote collaboration between Indian and Uzbek companies, leverage complementarities between the two economies and strengthen connectivity between their value-added supply chains.
They identified electrical items, engineering products, automobiles and pharmaceuticals as sectors with significant potential for bilateral trade and agreed to encourage closer business-to-business ties in these areas.
On investment, the leaders agreed to identify and promote mutually beneficial opportunities and establish an institutional mechanism to address investors' concerns and facilitate ease of doing business.
The two sides also agreed to explore enhanced cooperation between Uzbekistan's Investment Promotion Agency and Invest India through joint business forums, roadshows, investment seminars and stakeholder interactions.
The initiatives are aimed at facilitating greater two-way investment flows and strengthening business-to-business linkages.
The leaders welcomed the strong economic partnership between the two countries but noted that there remains "considerable untapped potential" for expanding bilateral trade and investment.
They also noted that the rapidly growing number of Indian companies operating in Uzbekistan reflects the significant potential for further expanding economic cooperation.
The economic push comes as India and Uzbekistan elevated their bilateral relationship to a Comprehensive Strategic Partnership, marking a new phase in their longstanding ties.
The two sides agreed to deepen cooperation across trade, economy and investment; transport connectivity; digital transformation, including IT and AI; space; cybersecurity; energy transition; critical minerals; food security; healthcare; pharmaceuticals; and education.
The leaders also welcomed the outcomes of the meeting of the Intergovernmental Commission on Trade, Economic, Scientific and Technical Cooperation and the Uzbekistan-India Business Forums held in June and August 2026.
They noted that these engagements had made a significant contribution to expanding trade, economic and investment cooperation between the two countries.
The latest agreements form part of Prime Minister Modi's state visit to Uzbekistan from August 29 to 30 at the invitation of President Mirziyoyev.
The two leaders held talks in a "warm, friendly and constructive atmosphere" and conducted a comprehensive review of bilateral relations as well as regional and international issues of mutual interest.
India and Uzbekistan established diplomatic relations on March 18, 1992, with the signing of a protocol in Tashkent. The two countries elevated their relationship to a Strategic Partnership in 2011.
The current visit marks another significant step in strengthening bilateral economic ties, with both sides seeking to translate the upgraded Comprehensive Strategic Partnership into expanded trade, investment and business cooperation.