According to the Economic Times Foreign Trade, India and Uzbekistan could explore a free trade agreement, with Piyush Goyal telling the India-Uzbekistan Business Forum in New Delhi that trade should lead efforts to strengthen economic relations between the two countries. The statement came as Uzbekistan's Minister of Investment, Industry and Trade Laziz Kudratov invited Indian companies to step up investments in mining and rare earths.
FTA signal: Goyal calls idea “promising”
Addressing the India-Uzbekistan Business Forum, Goyal responded to the possibility of a trade pact by saying, “That is a promising idea. We can look at that.” The Economic Times reported that Goyal said trade should lead efforts to strengthen economic relations between the two countries.
Bilateral trade at a glance
The Economic Times reported that bilateral trade currently stands at around $1.5 billion, while merchandise trade in FY26 was about $672.5 million. Kudratov said bilateral trade grew 30% last year to cross $1.3 billion for the first time. He expressed confidence that bilateral trade would reach $2 billion next year before expanding to $3–5 billion in the coming years.
| Indicator | Figure | Reported context |
|---|---|---|
| Current bilateral trade | Around $1.5 billion | Economic Times |
| Merchandise trade, FY26 | About $672.5 million | Economic Times |
| Trade growth last year | 30% | Crossed $1.3 billion for first time |
| Next-year target | $2 billion | Kudratov projection |
| Medium-term target | $3–5 billion | “In coming years” |
Uzbekistan's mining and rare earths pitch
Kudratov invited Indian companies to invest in Uzbekistan's mining and metallurgy sector, highlighting reserves of gold, copper, uranium, critical minerals and rare earth elements. He told the forum:
We are top 10 globally in terms of gold, copper, uranium deposits. We have almost all types of critical minerals and rare earth elements. We would be happy to discuss and to bring Indian technologies, know-how, and capital to develop steel production, deep processing of copper, and rare earth metals.
According to the Economic Times, Kudratov also invited Indian companies to:
- Expand fertiliser manufacturing in Uzbekistan
- Set up pharmaceutical and vaccine production facilities
- Participate in renewable energy projects as the country aims to raise the share of renewables in its energy mix to 54% by 2030
- Localise production of automotive components and industrial equipment
He identified chemicals, renewable energy, pharmaceuticals and automobiles as priority sectors for deeper collaboration beyond mining.
Existing investments and identified cooperation areas
The Economic Times reported that around 400 Indian companies already operate in Uzbekistan, with a joint project pipeline exceeding $5 billion. Earlier this year, the two sides identified pharmaceuticals, agriculture, engineering goods, electronics, healthcare services, ICT and critical minerals as key areas for expanding economic cooperation.
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