Trade between the countries of Central Asia and India is growing, edging closer to the $2 billion mark and signaling a new phase in cooperation across the Eurasian continent. According to data from the Eurasian Development Bank (EDB), this surge reflects the expanding economic footprint of both regions.
Nikolay Podguzov, Chairman of the EDB, emphasized that Central Asia and India are not only continental neighbors but also markets with significant untapped potential. Of the bank’s seven member states, four — Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan — form the heart of Central Asia. Their growing engagement with New Delhi is now setting the tone for broader regional cooperation.
Strong Growth as a Foundation
The economic fundamentals supporting this trend are healthy. Central Asia has maintained steady growth of around 4.5% annually, while India’s economy continues to expand even faster, at roughly 6% per year. But despite this positive backdrop, there are still logistical hurdles. Trade routes between India and Central Asia must pass through intermediary countries such as Iran, Russia, or Azerbaijan — each adding layers of bureaucracy, customs costs, and delays.
Experts argue that overcoming these transit bottlenecks will be crucial if India and Central Asia are to unlock the full potential of their partnership. New initiatives like the International North-South Transport Corridor and discussions on India’s role in developing Chabahar Port in Iran reflect ongoing efforts to make these pathways more efficient.
Kazakhstan: The Leading Partner
Kazakhstan is India’s largest trading partner in Central Asia, with bilateral trade crossing $1 billion — more than half of the region’s total trade with India. Astana supplies uranium, which is important for India’s civilian nuclear energy program, along with crude oil and steel products. In return, India exports pharmaceuticals, textiles, and consumer goods, with exports valued at around $260 million.
The two countries also collaborate in strategic sectors such as energy security and defense. In 2022, India and Kazakhstan conducted joint military drills under the Kazind exercise, which reflects a broadening relationship beyond commerce.
Uzbekistan: A Growing Market
Trade with Uzbekistan has risen steadily, approaching $500 million in bilateral turnover, while India’s exports to Uzbekistan are valued at around $1.3 billion. Pharmaceuticals, machinery, and agricultural products dominate New Delhi’s exports, while Uzbekistan provides fruits, minerals, and cotton to the Indian market.
Uzbekistan and India recently increased engagement through forums like the India-Central Asia Dialogue, where issues of connectivity, counterterrorism, and energy cooperation are regularly discussed.
Tajikistan: Small but Strategic
Although trade volumes with Tajikistan hover around $100 million, the partnership has strategic importance. Aluminium from Tajikistan’s massive TALCO smelter is a key export, while India provides medicines and consumer goods to Tajikistan. Beyond commerce, Dushanbe is a vital security partner for New Delhi. India operates a military facility in Tajikistan — the Farkhor Air Base, its only such presence abroad.
Kyrgyzstan: Modest Trade, Strong Ties
Kyrgyzstan’s trade with India is relatively small, at about $50 million, but the relationship is significant in the context of regional institutions like the Eurasian Economic Union (EAEU). The two nations also cooperate in education and tourism, with thousands of Indian students studying medicine in Kyrgyz universities. These people-to-people connections are seen as a foundation for stronger economic engagement in the future.
Looking Ahead
The trajectory of India-Central Asia trade is clear: while current figures remain modest compared to India’s dealings with other global partners, they are trending upwards. Both sides see opportunities in energy, infrastructure, and digital technology. Yet the success of this partnership will depend on how effectively they address logistical challenges, and diversify beyond traditional trade items.
For Central Asia, closer ties with India offer a chance to balance relationships with traditional partners such as Russia and China, while tapping into India’s massive consumer market.
