India has floated the possibility of a free trade agreement with Uzbekistan as Tashkent seeks Indian investment in copper and rare-earth processing.
Indian Commerce and Industry Minister Piyush Goyal described a potential agreement as a “promising idea” during an India-Uzbekistan Business Forum in New Delhi, saying the two governments could examine it further. He also called for bilateral trade to reach approximately $3 billion within three years.
Uzbek government figures put trade turnover at $1.3 billion in 2025, an increase of 33% from the previous year. The relationship remains heavily weighted toward Indian exports: Uzbekistan imported goods worth $1.15 billion from India while exporting $164.6 million in the opposite direction.
Mining provided the clearest new commercial focus during the visit by Uzbekistan’s Minister of Investments, Industry and Trade, Laziz Kudratov. He highlighted the country’s deposits of gold, copper, uranium and rare-earth elements, and invited Indian companies to provide capital and technology for copper refining and the production of higher-value rare-earth products.
More than 250 officials and business representatives attended the forum. Despite the, the event ended up being very light on investment announcements.
Uzbekistan is already trying to turn its mineral deposits into a domestic processing industry. In March, the government announced a $4.2 billion critical-minerals program comprising 120 projects. [when?] The first projects include the production of high-purity selenium, tellurium and rhenium, while the country is also seeking to expand its established tungsten and molybdenum industries.
India’s interest has a clear supply-chain rationale. China supplied between 60% and 81% of India’s permanent-magnet imports by value between 2022 and 2025, and an even larger share by volume. Rare-earth permanent magnets are used in electric-vehicle motors, wind turbines, electronics and defense equipment.
New Delhi has begun looking overseas for alternative supplies. Under its National Critical Mineral Mission, the state-owned Khanij Bidesh India Limited has secured exploration and mining rights covering five lithium-brine blocks in Argentina. It has also examined potential lithium and cobalt investments in Australia.
Beyond mining, pharmaceuticals appear to offer the strongest established basis for expanding trade, with Uzbekistan inviting Indian companies to establish local production facilities. According to the Indian Ministry of Foreign Affairs, approximately 400 Indian-owned companies already operate in Uzbekistan. [source?]
While no formal negotiations have begun, a free trade agreement could lower duties on these products. That said it would not remove larger regulatory logistical obstacles. India and Uzbekistan have no direct land connection, meaning freight must cross several borders or travel through Iranian ports and overland transport corridors.
Uzbek Foreign Minister Bakhtiyor Saidov said the visit produced agreements to expand investment and industrial cooperation, but provided no details of individual projects. For now, both the proposed trade agreement and the minerals partnership remain at an exploratory stage.
