• India and Uzbekistan signed the Bilateral Investment Treaty (BIT) aimed at boosting the confidence of investors of both the countries.

• The BIT between the Indian government and the government of Uzbekistan was signed by Finance Minister Nirmala Sitharaman and Khodjayev Jamshid Abdukhakimovich, Deputy Prime Minister of Uzbekistan, at Tashkent.

Highlights of the Treaty:

• The BIT between India and Uzbekistan assures appropriate protection to Uzbekistan investors in India and vice versa, in light of relevant international precedents and practices.

• It will increase the comfort level and boost the confidence of investors by assuring a minimum standard of treatment and non-discrimination, while providing for an independent forum for dispute settlement through arbitration.

• The treaty also provides for protection to investments from expropriation, provides for transparency, transfers and compensation for losses.

• While providing such investor and investment protection, balance has been maintained with regard to the State’s right to regulate and thereby provides adequate policy space.

• The signing of the BIT reflects both nations’ shared commitment towards enhancing economic cooperation and creating a more robust and resilient investment environment. 

• The treaty is expected to pave the way for increased bilateral investments, benefiting businesses and economies in both countries.

India-Uzbekistan Bilateral Relations

• India was one of the first countries to recognise the state sovereignty of Uzbekistan after the latter’s independence. 

• The protocol on establishment of diplomatic relations between India and Uzbekistan was signed in Tashkent on March 18, 1992. 

• India and Uzbekistan declared their Strategic Partnership in 2011. 

• Several institutionalised dialogue mechanisms operate at both political and official levels under this partnership, to ensure regular interaction and follow-up on cooperation activities.

• India is among top 10 trade partners of Uzbekistan with bilateral trade $756.60 million (as per Uzbek statistics-2023). 

• The major items of India’s exports are pharmaceutical products, mechanical equipment, vehicle parts, services, frozen buffalo meat, optical instruments and equipment and mobile phones. 

• India’s import from Uzbekistan consists largely of fruit and vegetable products, services, fertilizers, juice products and extracts, and lubricants.

• Total Indian investments in Uzbekistan amount to $61 million. Notable Indian investments by Indian companies include those in the field of pharmaceuticals, amusement parks, automobile components, and hospitality industry.

• India has longstanding and wide-ranging cooperation with Uzbekistan in the field of defence. Bilateral defence cooperation is carried out through the Joint working Group format, established in 2019.

• India-Uzbekistan military technical cooperation has evolved over time encompassing fields of military training, military education and defence industrial interaction. 

• The fifth edition of India-Uzbekistan military exercise ‘Dustlik’ was conducted in April 2024. 

• The size of the Indian community in Uzbekistan is estimated at 14,000, with members involved in various sectors such as business (including pharmaceuticals, tiles and marbles, granite, and textile).

• In June 2017 India became a member of the Shanghai Cooperation Organisation, of which Uzbekistan is a founding member. The Regional Anti-Terrorist Structure of the Shanghai Cooperation Organisation (SCO-RATS) is headquartered in Tashkent.

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