India’s Bilateral Outreach to Central Asia: Focus on Uzbekistan

India has been trying to extend its relations with Central Asia over the years to counter the growing presence of China in the region. In this regard Prime Minister Narendra Modi has made quite a few trips to the region. In fact he has been the first Indian Prime Minister to visit all of the five Central Asian states. As a result there have been significant bilateral ties between the region and India. In fact to further strengthen the ties in 2020 during the virtual India-Central Asia Dialogue, India assured to provide one billion dollar credit-line to the Central Asian countries.

In this prospect recently a joint army exercise took place in India for Uzbekistan’s army troops to learn counter terrorism drills. The ten days exercise started from March 10. India is facilitating this as a part of its security outreach to Uzbekistan. Rezang La Battalion, one of the well-known battalions from the 1962 Indo-China war imparted its skills to the Uzbek army.

The relations between India and Uzbekistan have improved a lot in the recent years. A lot of skill development and capacity building projects ranging from defence, security to trade, technology, health care, tourism, oil, gas, culture, and education among others are happening between the two regions. This training in India was a part of the defence and security cooperation between the two nations. This is not the first time since this training happened during the initial phase of the exercise Indian troops had gone to Uzbekistan back in 2019. The bilateral cooperation between the two countries is developing in leaps and bounds.

India is in a possible lookout for opportunities to amplify its bond with the region. Many similar training exercises are going to take place with the other countries of Central Asia later in the year. India has been already assisting Turkmenistan special-forces on the same. After the defence ministers of both the countries visited each other’s country back in 2018 and 2019 the idea for joint training of forces came into implementation. An India room has also been set up for the Army Academy in Uzbekistan.

India and Uzbekistan share historical linkages through the Silk Road. Also the famous Mughal ruler of India, Babur, was born in Uzbekistan.  During his tenure Islam Karimov also made several visits to India. The trade within the two nations was at USD 355 million in 2018-19 and is aimed at US $ 1 billion in future. Along with its strategic location Uzbekistan is a region of enormous resources and together both the nations are cooperating in multi-dimensional ways rather than just focussing on trade and energy sectors.

Uzbekistan is also taking some extensive steps to attract Indian investment. Plans are en-route to provide exclusive special economic zones for Indian companies in Navoi, Angren and Jizzakh. The region has now emerged as a potential sector to attract leading Indian groups. Major Indian companies like GMR and Reliance have shown interest in investment in Uzbekistan. Apart from industries, education groups are also noticing the area. Amity University have opened college in Tashkent and Sharda University started campus in Andijan in 2019.  In other fields, institutions such as iCreate are working together with colleagues from Uzbekistan and training entrepreneurs. Indian companies are also entering into bilateral cooperation in research sectors with Uzbek counterparts. NTPC is also a budding partner with the region for gas and solar projects. Uzbekistan is also potential for India for the purchase of uranium for nuclear reactors.

India and Uzbekistan share mutual concerns on a number of security problems such as terrorism, trans-national organized crime, illegal trafficking and smuggling among others and for this very reason in 2015 both nations inked a joint agreement to enhance cooperation towards defence and security services. India has also promised a USD 40 million credit for defence industrial cooperation. Also in 2020 virtual bilateral summit, India also offered US $448 million credit for developmental and IT projects. These credits can help to rejuvenate ties between India and Uzbekistan.

The security and defence training comes against the backdrop of growing concerns of terrorism in Uzbekistan. The bilateral defence and security cooperation in this regard will be beneficial for the nation. Apart from the training of special-forces assistance has also been assured for aviation schools in Uzbekistan. Regular defence cooperation plans have also been levied annually.

At this moment China is also very much interested in Central Asia and has emerged as one of their main trading partners. China has a huge market influence over there and has registered more than 500 companies in there in the year 2019. Also they are one of the major importers of gas from there. Uzbekistan is en-route to progress and its economy is in a growing phase due to the reforms made by President Shavkat Mirziyoyev. There is a massive demand for investment in there but at the same time China’s assertive interest in the region can’t be looked past. And all of this very much makes the region all of more important and strategic for India.   

There is an increasing convergence between both the nations and can acquire new dimensions in the future as many bilateral projects are getting along. However land connectivity is something to be looked upon in near future only for betterment of the relations between both the regions. The landlocked country of Uzbekistan has been depicting a lot of interest in Chabahar port. Uzbekistan has been looking forward to this as an opportunity to strengthen its exports and limit the influence of China. Apart from this both India and Uzbekistan are also part of 2011 Ashgabat Agreement which focuses on making transport corridor Central Asia and Persian Gulf.

All of this progress and cooperation can lead to further strengthening the ties between the two regions. There is a significant development prospect for both the nations and both are making ways for diversifying cooperation in all the possible fields. And as India looks forward to increase its ties with Central Asia, Uzbekistan can be a potential partner.

Nazia Jafri

Adjunct Researcher, AGA

Readings:

The Print: https://theprint.in/defence/amid-growing-isis-concern-in-uzbekistan-indian-uzbek-army-conduct-counter-terrorism-drill/622036/

Ministry of External Affairs India (MEA): https://mea.gov.in/bilateral-documents.htm?dtl/25429/Joint_Statement_between_Uzbekistan_and_India_during_the_Prime_Ministers_visit_to_Uzbekistan

ORF: https://www.orfonline.org/expert-speak/the-potential-for-transformative-india-uzbekistan-bilateral-relations/

The State Committee of the Republic of Uzbekistan on Statistics: https://www.stat.uz/en/

Embassy of India, Tashkent, Uzbekistan: https://eoi.gov.in/tashkent/?2615?000#:~:text=In%20recent%20years%2C%20there%20has,2018%20and%20in%20January%202019.