Beyond Trade: Why Modi’s Uzbekistan Visit Matters for India’s Critical Mineral Hunt

Prime Minister Narendra Modi’s visit to Uzbekistan comes at a time when India is looking to deepen its economic and strategic engagement with Central Asia, with trade, investment and access to critical minerals emerging as key areas of opportunity.

Modi is in Uzbekistan for a two-day visit on August 29-30, his fourth visit to the country and second bilateral visit.

He is holding delegation-level talks with Uzbek President Shavkat Mirziyoyev in Tashkent, with discussions covering trade and investment, defence, digital connectivity, energy, education and people-to-people ties.

The two leaders are also expected to exchange views on their respective long-term development visions — Viksit Bharat 2047 and Uzbekistan-2030.

Against this backdrop, a report titled India-Uzbekistan Trade Dynamics, released ahead of the visit, highlights the growing economic relationship between the two countries, while also pointing to areas where bilateral trade remains relatively narrow.

How Significant Is India-Uzbekistan Trade?

India is among Uzbekistan’s top 10 trading partners, with economic engagement spanning trade, investment and business partnerships.

The report cites two different measures of bilateral trade. According to the Embassy of India in Tashkent, bilateral trade has reached $1.32 billion, while India's Directorate General of Foreign Trade data puts merchandise trade at around $673 million in FY2026. The report notes that the two figures may cover different periods or methodologies and therefore should not be directly compared.

The DGFT data nevertheless shows a clear increase in India's merchandise trade with Uzbekistan. Total goods trade rose from $343 million in FY2022 to $673 million in FY2026, representing an 18% compound annual growth rate.

However, the expansion has been overwhelmingly driven by Indian exports. India's exports to Uzbekistan more than doubled from $271 million in FY2022 to $658 million in FY2026, while imports fell from $71 million to just $15 million. As a result, India's trade surplus with Uzbekistan more than tripled from $200 million to $643 million over the same period.

What Does India Sell To Uzbekistan?

Frozen bovine meat accounted for just 1% of India's exports to Uzbekistan in FY2022, but its share jumped to 46% in FY2026, making it the dominant export category.

Pharmaceutical products, meanwhile, saw their share decline from 40% to 15%. Blood and vaccines accounted for another 2% in FY2026. Bananas and plantains also emerged as a notable export category, with their share rising to 13%.

The report identifies pharmaceuticals as an important area for future expansion. Uzbekistan imports more than $3 billion of medical products annually and has invited Indian pharmaceutical companies to establish joint manufacturing facilities. This could allow Indian companies to move beyond simply exporting medicines and establish a deeper manufacturing presence in the Uzbek market.

What Does India Import?

India's imports from Uzbekistan remain small but have become concentrated in a handful of products.

Natural gums and resins accounted for 31% of imports in FY2026, compared with 15% in FY2022. Potassic fertilisers accounted for 14%, copper tubes 11%, raw silk 9% and nitrogenous fertilisers 8%.

The report points to potential for greater industrial integration, particularly in fertilisers. Uzbekistan is a significant fertiliser producer in Central Asia and has invited Indian companies to participate in expanding production there.

Why Are Critical Minerals Important?

Perhaps the most strategically significant opportunity lies in critical minerals.

Uzbekistan has reserves of minerals including copper, molybdenum, lithium, tungsten, graphite, selenium, rhenium, tellurium, indium and germanium. The report notes that only a portion of the country's identified deposits are currently being mined, leaving considerable scope for exploration, processing and industrial development.

This is particularly relevant for India as demand rises for materials used in electric vehicles, batteries, semiconductors, renewable energy, aerospace and advanced manufacturing.

Uzbekistan plans 120 critical-mineral projects worth $4.2 billion between 2026 and 2030, targeting industry output of $2 billion by 2030. For India, potential areas of cooperation include long-term sourcing agreements, offtake arrangements, joint ventures and investments spanning mining, beneficiation and downstream processing.

Tungsten and molybdenum are identified as particularly important. Uzbekistan has 373,400 metric tonnes of molybdenum reserves, while its tungsten reserves stand at 2,600 tonnes. The report also highlights graphite and lithium for their relevance to India's expanding battery and energy-storage ecosystem.

What Comes Next?

Modi's visit provides an opportunity to translate these areas of potential into deeper commercial partnerships. Beyond trade, India and Uzbekistan are discussing cooperation in defence, digital connectivity, energy and education.

After Uzbekistan, Modi will travel to Bishkek, Kyrgyz Republic, for the 26th SCO Summit on August 31 and September 1. He is expected to highlight India's priorities of security, connectivity and opportunity at the summit and hold bilateral meetings with SCO leaders.

For India-Uzbekistan ties, the larger objective is to move beyond a relationship centred on a growing but heavily export-led trade basket towards greater investment, local manufacturing, resource partnerships and strategic supply chains.

The critical-minerals opportunity, in particular, could give the economic relationship a more strategic dimension in the years ahead.