Uzbekistan and India sign 42 agreements worth over $150mn

Representatives of business circles of Uzbekistan and India attended the Uzbek-Indian business forum on 22 August in Delhi.

Foreign Minister of Uzbekistan Abulaziz Kamilov, Minister for Foreign Trade Elyor Ganiev, First Deputy Chairman of the State Committee of Republic Uzbekistan on investment Laziz Kudratov, Minister of state for trade and industry of India Nirmala, Seetharaman, honorary President of the Chamber of Commerce and Industry "India-CIS" Rajan Madhu, heads of leading companies of Uzbekistan and India delivered their speeches during the event.

Foreign Minister Abdulaziz Kamilov in his speech at the opening of the forum noted that Uzbekistan attaches great importance to expansion of trade-economic and investment cooperation with India, the establishment of closer relations between our business communities, attracting new Indian companies to participate in production projects in Uzbekistan.

Our country pays great attention to expanding the multifaceted and mutually beneficial cooperation with India.

The Minister said that the business circles of Uzbekistan and India should serve as an engine of this process.

A. Kamilov briefly presented information about the pace of economic development of our country.

By the end of 2016, the Gross Domestic Product (GDP) of Uzbekistan increased by 7.8%, volumes of industrial production – 6.6%, agricultural production – 6.9%, capital construction – 12.5%, retail trade – 14.4%, services – 12.5%. About 70% of output are finished goods with high added value.

In the first half of 2017, the GDP of the Republic increased by 7% compared to the same period in 2016. The volume of industrial production for the six months increased 7.6%, retail turnover –11.1%, services – 11.6%, manufacture of agricultural products - 5.8%.

Trade and economic relations between Uzbekistan and India are developing dynamically. Over the past five years, the trade turnover between our countries has increased more than twice and by the end of 2016 reached $370 million, in the first half of 2017 – $166.5 million. 101 enterprises with participation of Indian capital operate in Uzbekistan as of today, including 15 with 100% foreign capital.

However, there is a significant potential to further increase and diversify the range of trade.

Today, enterprises and companies of Uzbekistan are ready to supply the Indian market with a wide range of exports, including cotton fiber, cotton yarn, thread and fabric, copper, chemical products, fertilizers, electrical, wiring and cabling, fruits and vegetables and other products, as well as to expand the range of services.

Uzbekistan is interested in attracting Indian technology companies to implement joint projects to organize the production of popular ready-made industrial products, including chemical products, pharmaceuticals, and projects in textile, leather industries, information technology and telecommunications etc.

The Minister drew attention of the forum participants to the fact that today foreign investors are provided with all necessary conditions: tax benefits, duty-free importation of industrial equipment, other benefits for investing in the implementation of promising projects.

During the visit of the delegation of Uzbekistan to India, as well as following the results of the business forum, a total of 22 contracts worth over $80 million, as well as 20 investment agreements worth more than $70 million were signed.