Trade Articles

India and Uzbekistan have consensus agreed that the economic conditions and untapped business potential of both nations could aim towards bolstering the bilateral trading and investment sector in both nations marketplaces. Here in the 8th session of the inter-government commission on Trade, Economic, Scientific and Technological Cooperation, it has been figured out that the bilateral trade turnover during the Ist half of the year 2008 has touched to the mark of $40 million. Held from September 16-17, 2008 in New Delhi, from India the commission was chaired by Mr. Jairam Ramesh, Union Minister of State for Commerce and Power and Mr. Batyr Khodjaev, Minister of Economy of Uzbekistan. As per an estimate, the trading between both nations have increased by 8 per cent in previous year i.e, 2007 at US$64.4 million with India's import to Uzbekistan at $9.5 million and $54.9 million exports from India.

Calling attention to the Memorandum of Understanding (MoU) signed in April 2006 by both nations, India has reiterated its commitment for establishing Uzbek-Indian Entrepreneurs Development Center in Tashkent and welcome initiatives taken from the Uzbek side to fasten the process of getting clearance for the project. The commission envisaged on the needs of taking investment cooperation steps in processed food and agricultural products, information technology, petrochemicals, fertilizers, ferrous & non-ferrous metals and both nations have agreed for exploring out the trading opportunities and allowing investment in the aforesaid sectors with the mutual consultations. The commission has also made out the various possibilities concerning to the setting up of the various joint ventures in the gas-based petrochemicals and fertilizers areas of the Uzbekistan.

Leading Investors

Mr. Jairam Ramesh has been quite clear and positive about the India's performance as many Indian companies have been emerged out as the indubitable winner in the Uzbekistan's economic sector. These companies have been characterized as the major investor and have been counted in the 5 top non-oil sectors. Candidly throwing light on the Indian companies performance, Mr. Ramesh said that the Minda, an Indian company, has make an investment of $25 million towards manufacturing of automotive components, sourcing these components from Uzbekistan. With $80 million, the Spandex Textiles has been characterized as the largest cotton yarn exporter to Europe. It has employed more than 5000 Uzbek employees. Adani Group is also framing its plans of establishing food processing plant by making out usage of abundant quantity of fruits available in the Uzbekistan. More such cooperation plans are in pipeline and BHEL, largest engineering and manufacturing sector of India, could help Uzbekistan in upgrading and modernizing its different power plants. The ready made garments manufacturers and exporters of Uzbekistan could meet their demands of fabric, denim and yarn by sourcing them from India. The Uzbek has entered 5 MoUs with the Indian business enterprise of textile and leather industry. They have agreed upon in allowing the set up of joint ventures for producing textile products, silk processing and other finished products, in both countries.