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India and Uzbekistan forge strategic pact with $5bn trade goal and uranium deal

India and Uzbekistan forge strategic pact with $5bn trade goal and uranium deal
World · 2026
Photo · Anna Schroeder for European Pulse
By Anna Schroeder Brussels Bureau Chief Aug 30, 2026 4 min read

India and Uzbekistan have formally elevated their bilateral relationship to a Comprehensive Strategic Partnership, with a joint commitment to more than triple trade to $5bn (€4.29bn) by 2030. The announcement came during Indian Prime Minister Narendra Modi's state visit to Tashkent, where the two governments also signalled that a new long-term uranium supply agreement is close to completion.

India's Ministry of External Affairs described the discussions as “positive” and indicated that the uranium contract could be signed “very shortly.” A memorandum on mining and geological resources, signed during the visit, is expected to bolster cooperation on critical minerals, including uranium. India already imports uranium from Uzbekistan under a 2019 contract covering 1,100 metric tonnes of natural uranium concentrate, with deliveries running through 2026. According to a parliamentary answer published in March 2025, India had received 600 metric tonnes under that agreement by then.

The uranium imports are used in India's civilian nuclear power reactors, which are under International Atomic Energy Agency safeguards. New Delhi has ambitious plans to expand its nuclear generating capacity to 100 GW by 2047, making reliable fuel supplies a strategic priority.

Trade and digital payments

Uzbek President Shavkat Mirziyoyev reported that bilateral trade grew by 33% last year to $1.3bn (€1.12bn). The two leaders now aim to reach $5bn by 2030, a target that will require removing non-tariff barriers, improving market access, and deepening manufacturing and supply-chain links. A new working group will be established to tackle trade and investment obstacles, and the two sides will assess next steps after a feasibility study on a possible Uzbekistan-India Preferential Trade Agreement is completed.

Digital payments emerged as a concrete outcome. A commercial agreement between India's NPCI International Payments Limited and Uzbekistan's National Interbank Processing Centre will allow Indian travellers to use UPI-enabled payment apps in Uzbekistan once implemented. Indian officials expect the rollout within about a year.

The two governments also endorsed greater use of multimodal transport routes to reduce freight costs between India and landlocked Uzbekistan. Other agreements covered education, environmental cooperation, and closer ties between Indian and Uzbek regions.

Defence and regional cooperation

A new foreign minister-level mechanism will oversee the expanded partnership, while the existing Intergovernmental Commission will be upgraded to ministerial level. Defence and security cooperation is set to widen, with the joint statement identifying new opportunities for collaboration between the two countries' defence industries. India and Uzbekistan already hold the annual Dustlik joint military exercise.

Both sides reiterated a zero-tolerance approach to terrorism and called for enhanced intelligence-sharing, law enforcement cooperation, and counter-terrorism efforts. On multilateral affairs, Uzbekistan reaffirmed its support for India's bid for permanent membership of a reformed UN Security Council. The leaders also pledged closer coordination within the Shanghai Cooperation Organisation and on Global South issues.

Education, culture, and people-to-people ties

Tourism is set to expand, with the Uzbek presidency highlighting a 30-day visa-free regime and 14 weekly flights between the two countries. A tourism cooperation programme for 2026–2028 was adopted. Four Indian universities operate in Uzbekistan, and around 16,000 Indian students, many studying medicine, are enrolled there. India also announced 100 scholarships for Uzbek students studying Hindi.

Modi attended a session organised by the Yoga Federation of Uzbekistan and was awarded the Oliy Darajali Do‘stlik Order, described by the Indian government as Uzbekistan's highest honour for foreign leaders. It was his fourth visit to Uzbekistan, coinciding with 15 years of strategic partnership between the two nations.

“A stronger India-Uzbekistan partnership will be a powerful force for peace, progress and prosperity in Central Asia,” Modi said after the talks. The visit underscores the growing importance of Central Asia in India's foreign policy, as New Delhi seeks to counterbalance Chinese influence in the region. For Uzbekistan, the partnership offers access to Indian markets, technology, and investment, as well as a route to diversify its economy beyond traditional sectors. The two countries' cooperation on transport corridors, including the Middle Corridor, could also enhance connectivity between South and Central Asia, with potential benefits for European trade routes.

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