Uzbekistan Courts Indian Investment with Generous Incentives
Moneylife Digital Team 20 January 2025
To strengthen economic ties, Uzbekistan is offering Indian businesses land, tax benefits and access to affordable power to boost investment in the Central Asian nation. Speaking at the World Trade Center in Mumbai, Sardar Rustambaev, the ambassador of Uzbekistan to India, highlighted the potential for deeper collaboration across next-generation industries and manufacturing.
 
“Uzbekistan is a strategic partner of India, and our relations are marked by strong diplomatic and political ties,” Mr Rustambaev says. “Our government is committed to providing Indian companies with the resources and support they need to establish a presence in Uzbekistan, opening doors to the 300mn (million) strong Commonwealth of Independent States (CIS) market.”
 
Uzbekistan, which has transformed its industrial landscape over the past decade, offers Indian investors access to 24 industrial economic zones (IEZs) and IT parks. Sectors such as pharmaceuticals, semiconductors, electronics, and renewable energy are particularly ripe for collaboration. Indian businesses will benefit from duty-free imports, tax incentives and low-cost power.
 
“Indian companies can bring technology, skilled labour, and capital to leverage Uzbekistan’s favourable trade agreements with the European Union (EU) and the US,” Mr Rustambaev added.
 
Uzbekistan, a leading global producer of gold, is seeking partnerships with the Indian gems and jewellery industry. “Our craftsmen create designs that are widely popular in the CIS region. By combining Indian casting and AutoCAD technologies with our artisans’ expertise, we can produce high-quality jewellery for export,” the ambassador says.
 
Trade between India and Uzbekistan, currently at US$470mn, has significant room for growth. Dr Vijay Kalantri, chairman of WTC Mumbai, urged both nations to explore partnerships in green energy, food security, and creative industries.
 
The ambassador’s visit also included discussions with leaders from Reliance Industries, Hinduja group and Gold Star Diamonds, among others. In addition, Bollywood’s leading figures expressed interest in film production collaborations, further enhancing cultural ties.
 
Education and tourism are also key areas of collaboration. With over 10,000 Indian students currently studying in Uzbekistan and Indian tourist numbers expected to exceed 100,000 this year, the nation is becoming an increasingly popular destination for Indians.
 
Prime minister (PM) Narendra Modi is expected to visit Uzbekistan later this year, underscoring the growing strategic importance of the partnership. “Uzbekistan’s natural resources, geographic location, and investment-friendly policies make it an ideal gateway to the CIS region and beyond,” Mr Rustambaev concluded.
Comments
ArrayArray
Free Helpline
Legal Credit
Feedback