Uzbekistan Eyes Indian Pharma Investment With Subsidies and Tech Transfer Push

Uzbekistan is looking to deepen its pharmaceutical ties with India by offering enhanced subsidies and technology transfer incentives to attract greater investment from Indian drug manufacturers, according to Shokhrukh Gulamov, Deputy Minister of Investment, Industry and Trade.

Speaking to PTI, Gulamov outlined a series of policy reforms his country is considering to make local pharmaceutical production more appealing to Indian companies. These include simplified regulatory approvals, streamlined licensing procedures, reduced bureaucratic hurdles, and more predictable regulatory timelines all aimed at lowering the barriers to entry for foreign investors.

"Tax incentives and subsidies for technology transfer, industrial cluster participation, and export-oriented production could further encourage investment," he said, adding that access to well-equipped industrial zones and joint venture arrangements with local partners would help accelerate production capacity while maintaining compliance with international quality standards.

Gulamov also emphasized that protecting intellectual property rights and ensuring long-term policy stability are non-negotiable elements for attracting high-value pharmaceutical investments. He noted that integrating local production with regional distribution networks and export programs would not only improve profitability for investors but also reduce Uzbekistan's dependence on imported medicines.

Such reforms, he argued, would allow Indian companies to produce essential medicines closer to demand, improve healthcare access across the region, and consolidate Uzbekistan's standing as a pharmaceutical manufacturing and supply hub for Central Asia.

Beyond pharmaceuticals, Gulamov highlighted the broader economic relationship between the two nations, pointing to cultural diplomacy as a key enabler of trade. Indian tourism and film projects set in Uzbekistan are generating opportunities in hospitality, transport, and services, while cultural events and film festivals are building the trust needed for smoother business collaboration.

On the trade front, the numbers tell a compelling story. Bilateral trade between India and Uzbekistan reached $1.317 billion in 2025, a 33.3 percent jump compared to 2024. Indian exports to Uzbekistan grew 25.4 percent to $164.6 million, while imports surged 34.6 percent to $1.153 billion. By early 2026, the two-way trade volume had already touched $300 million, signaling continued momentum.

The partnership is underpinned by 117 bilateral agreements, including a Strategic Partnership Declaration signed in 2011 and a more recent Investment Protection Agreement concluded in September 2024. Institutional frameworks such as the Intergovernmental Joint Commission and the Uzbekistan-India Business Council actively coordinate trade and investment initiatives between the two countries.

Indian investment in Uzbekistan is accelerating sharply. In 2025, direct investments realized totaled $292.9 million, and as of May 2026, 397 Indian-invested enterprises are operating in the country including 311 joint ventures across sectors. Freight connectivity has also improved significantly, with volumes rising 51.2 percent in 2025 alongside expanded air links, supporting deeper integration in transport, pharmaceuticals, engineering, and information technology.