Modi, Uzbek President talk long-term uranium supply, set $5 billion trade target
2-minute summary
During Prime Minister Narendra Modi's official visit to Uzbekistan in August 2026, India and Uzbekistan elevated their bilateral relations to a Comprehensive Strategic Partnership. Key outcomes of the bilateral talks with Uzbek President Shavkat Mirziyoyev included discussions on establishing a long-term framework for uranium supply to meet India's civil nuclear energy needs, and setting an ambitious bilateral trade target of USD 5 billion by 2030 (up from approximately USD 1 billion in 2025-26). PM Modi was conferred with Uzbekistan's highest civilian honor for foreign leaders, the Oliy Darajali Do’stlik Order. The two nations signed 11 agreements spanning mining, culture, education, and tourism. Notably, India committed a USD 1 million grant for afforestation in the ecologically degraded Aral Sea region and signed a Letter of Intent to assist in restoring the ancient Buddhist heritage sites of Fayaz Tepa and Kara Tepa. Security cooperation was also emphasized, highlighting the joint military exercise 'Dustlik' and a shared zero-tolerance policy toward terrorism.
Why it's in the news
Prime Minister Narendra Modi visited Uzbekistan in August 2026, elevating bilateral ties to a Comprehensive Strategic Partnership, discussing long-term uranium supply, and setting a USD 5 billion bilateral trade target by 2030.
Background and context
India's engagement with Central Asia is guided by its 'Connect Central Asia' policy, launched in 2012, which seeks to strengthen geopolitical, economic, and energy ties with the resource-rich region. Uzbekistan, located at the geographic heart of Central Asia, is a critical partner in this matrix. Geopolitically, the region acts as a transit corridor and a security buffer, particularly post-2021 developments in Afghanistan. Economically, Central Asia holds vast reserves of critical minerals, natural gas, and uranium. India, which imports a significant portion of its nuclear fuel, signed a long-term uranium supply agreement with Uzbekistan in 2019 to diversify its sources away from heavy reliance on Kazakhstan and Canada. However, the realization of full trade potential has historically been hindered by the lack of direct land connectivity, prompting India to invest in alternative routes like the International North-South Transport Corridor (INSTC) and Iran's Chabahar Port.
Constitutional provisions
- Seventh Schedule (Union List - Entry 10 to 14) — Deals with foreign affairs, entering into treaties, agreements, and conventions with foreign countries, which governs bilateral pacts signed by the executive.
- Article 51 (Directive Principles of State Policy) — Promotes international peace and security, and maintaining just and honorable relations between nations.
Government schemes
- Connect Central Asia Policy — The overarching foreign policy framework aimed at strengthening political, economic, security, and cultural connections with Central Asian nations, including Uzbekistan.
International organisations
- Shanghai Cooperation Organisation (SCO) — Both India and Uzbekistan are permanent members of this Eurasian political, economic, and security alliance, which serves as a key multilateral platform for their regional engagement.
- International Atomic Energy Agency (IAEA) — The international body that monitors nuclear safeguards; India's uranium imports from Uzbekistan are subject to IAEA safeguards under civil nuclear cooperation.
Previous UPSC questions on this theme
- Mains GS-2 2021 — Critically examine the aims and objectives of SCO. What importance does it hold for India?
- Mains GS-2 2018 — A number of outside powers have entrenched themselves in Central Asia, which is a zone of interest to India. Discuss the implications, in this context, of India's joining the Ashgabat Agreement, 2018.
Mains practice: Evaluate the strategic, economic, and cultural significance of Uzbekistan in India's 'Connect Central Asia' policy. What are the major challenges in realizing the full potential of this partnership?
Uzbekistan, situated at the geographic heart of Central Asia, serves as a linchpin for India's regional outreach. The elevation of bilateral ties to a 'Comprehensive Strategic Partnership' in August 2026 underscores the growing multi-dimensional synergy between the two nations.
**Strategic and Economic Significance:**
• **Energy Security**: Uzbekistan is a critical partner for India's civil nuclear energy program. The progress toward a long-term uranium supply framework ensures a stable fuel source for India's domestic nuclear reactors, helping diversify energy imports.
• **Security and Counter-Terrorism**: Both nations share deep concerns regarding regional stability, extremism, and the spillover effects of instability in Afghanistan. Joint military exercises like 'Dustlik' and institutionalized intelligence sharing strengthen regional security architecture.
• **Economic Diversification**: Setting a USD 5 billion trade target by 2030 aims to address the historically low trade volume (approx. USD 1 billion in 2025-26). Cooperation in critical minerals, pharmaceuticals, and digital public infrastructure (UPI) offers new avenues for Indian industries.
• **Cultural Diplomacy**: Deep-rooted historical linkages are reinforced by India's commitment to restore ancient Buddhist sites like Fayaz Tepa and Kara Tepa, alongside educational initiatives like the Lal Bahadur Shastri Scholarships.
**Key Challenges:**
• **Connectivity Deficit**: The primary bottleneck is the lack of direct land access due to geopolitical barriers. While the International North-South Transport Corridor (INSTC) and Chabahar Port offer alternatives, their operationalization remains slow.
• **Chinese Footprint**: China's deep economic penetration through the Belt and Road Initiative (BRI) presents a competitive challenge for India in securing trade and investment opportunities.
**Conclusion:**
To unlock the full potential of this partnership, India must expedite connectivity projects, deepen defense industrial co-production, and leverage its soft power to present itself as a reliable, non-exploitative developmental partner in Central Asia.
Prelims practice questions
Q1. With reference to ancient Buddhist heritage, the archaeological sites of 'Fayaz Tepa' and 'Kara Tepa', recently in the news for conservation cooperation, are located in which country?
- Tajikistan
- Afghanistan
- Kyrgyzstan
- Uzbekistan
Answer: D. During the bilateral meet in August 2026, India and Uzbekistan signed a Letter of Intent for the restoration and conservation of the ancient Buddhist sites of Fayaz Tepa and Kara Tepa, which are located in Uzbekistan.
Q2. Consider the following statements regarding the joint military exercise 'Dustlik': 1. It is a bilateral military exercise conducted between India and Uzbekistan. 2. The 2026 edition of this exercise was hosted in the Namangan Region. Which of the statements given above is/are correct?
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
Answer: C. Both statements are correct. 'Dustlik' is the joint military exercise between India and Uzbekistan. The joint statement of August 2026 welcomed the successful conduct of the latest edition of the exercise in the Namangan Region of Uzbekistan in April 2026.
Q3. The Aral Sea, for which India announced a USD 1 million afforestation grant in August 2026, is geographically bordered by which of the following countries?
- Tajikistan and Uzbekistan
- Kazakhstan and Uzbekistan
- Uzbekistan and Turkmenistan
- Kazakhstan and Kyrgyzstan
Answer: B. The Aral Sea is an endorheic lake lying between Kazakhstan in the north and Uzbekistan in the south. It has undergone severe shrinkage due to water diversion, and India has announced a grant of USD 1 million for afforestation in this region to combat desertification.
Revision flashcards
- What is 'Dustlik' and which two countries participate in it? It is a bilateral joint military exercise conducted between the armed forces of India and Uzbekistan.
- Which Buddhist archaeological sites in Uzbekistan did India agree to help restore and conserve in 2026? Fayaz Tepa and Kara Tepa.
- What is the bilateral trade target set by India and Uzbekistan to be achieved by 2030? USD 5 billion (up from approximately USD 1 billion in 2025-26).
- What is the name of Uzbekistan's highest award for foreign leaders conferred upon PM Narendra Modi in August 2026? Oliy Darajali Do’stlik Order (Order of Highest Friendship).
- For which environmental disaster zone did India announce a USD 1 million afforestation grant during the 2026 bilateral meet? The Aral Sea region.