Why in News?
Commerce and Industry Minister Piyush Goyal urged businesses from both countries to collaborate on investment, production and innovation at the India-Uzbekistan Business Forum held in New Delhi. He also proposed doubling bilateral trade between the two nations over the next three years.
Key Highlights
- Trade between India and Uzbekistan currently stands at approximately US$ 1.5 billion.
- Both nations have recently finalized a Bilateral Investment Treaty (BIT), which is expected to boost investor confidence on both sides.
- Goyal stated that combining Uzbekistan's cotton production capabilities with India's textile expertise could open up new avenues in the global market.
- Additionally, India proposed collaboration on affordable medicines, medical devices, diagnostics, telemedicine, and medical staff training while also emphasizing deeper cooperation in Ayurveda, Yoga, and the Unani system of medicine.
- Discussions were also held regarding cold chain infrastructure, packaging, agri-tech, and food processing units within the agriculture and food processing sectors.
- India identified sectors such as Digital Public Infrastructure (DPI), fintech, med-tech, agri-tech, advanced manufacturing, engineering goods, and automobiles as areas with significant potential for joint development.
About Uzbekistan
- Uzbekistan is a landlocked nation in Central Asia and Tashkent is its capital.
- It borders Kazakhstan, Kyrgyzstan, Tajikistan, Afghanistan and Turkmenistan.
- It ranks among the top cotton-producing countries in the world.
- Uzbekistan is part of the Shanghai Cooperation Organisation (SCO).
- Ties between India and Uzbekistan run across trade, energy, connectivity, education, defence and culture.
Significance
- With the BIT now in place investors on both sides get legal protection, so cross-border investment should become easier going forward.
- Pairing Uzbek cotton with Indian textile manufacturing gives both countries a stronger shot at global textile markets.
- By offering its DPI and fintech experience, India gets to extend its digital governance model built around Aadhaar and UPI to a Central Asian partner.
- Because Uzbekistan lies at the centre of Central Asia, closer trade and connectivity links with it also serve India's wider strategic goals in the region.
Static Facts
- A Bilateral Investment Treaty (BIT) gives foreign investors legal protection and is meant to encourage cross-border investment.
- India's DPI stack includes platforms such as Aadhaar, UPI, DigiLocker and CoWIN.
- India is often referred to as the "Pharmacy of the World" for its large-scale production of affordable generic medicines.
- India's Connect Central Asia Policy, launched in 2012, aims at strengthening trade, investment and strategic ties with Central Asian countries.
