Finance Minister Sitharaman’s visit comes at a time when global economic cooperation and multilateralism are more important than ever
Union Finance and Corporate Affairs Minister Nirmala Sitharaman is leading a high-level Indian delegation to Uzbekistan from September 24 to 28, 2024, marking a significant step toward strengthening economic and financial cooperation between India and Uzbekistan. During her visit, the Finance Minister will attend the 9th Annual Meeting of the Board of Governors of the Asian Infrastructure Investment Bank (AIIB) in Samarkand and sign a crucial Bilateral Investment Treaty (BIT) with Uzbekistan, signaling enhanced bilateral economic engagement.

The 9th Annual Meeting of the Board of Governors of AIIB is scheduled for September 25-26, 2024. India, being the second-largest shareholder in AIIB, plays a pivotal role in the institution’s development agenda. The discussions at the meeting will cover a broad spectrum of issues, including infrastructure investment, sustainable development, and global economic challenges.

AIIB, as a multilateral development bank, focuses on fostering infrastructure development and investment in Asia, with an emphasis on promoting connectivity and wealth creation. The annual meeting will see delegations from over 80 countries coming together to address these global issues. 

As India’s official Governor to the AIIB, Sitharaman is expected to engage in detailed discussions regarding future funding avenues, collaborations for infrastructure projects, and strategies to enhance economic development across Asia.

Signing of Bilateral Investment Treaty with Uzbekistan

 A major focus of the Finance Minister’s visit will be the signing of a Bilateral Investment Treaty (BIT) between India and Uzbekistan, aimed at bolstering long-term economic cooperation between the two nations. The treaty will be signed by Finance Minister Sitharaman and the Uzbekistan Minister for Investment, Industry, and Trade, laying the groundwork for greater investment opportunities in both countries.

The BIT will create favorable conditions for investors from both nations, encouraging reciprocal protection of investments and fostering confidence among businesses. It aims to ensure fair treatment of investors and protect them from risks such as expropriation, while also facilitating smooth capital transfers. By providing a stable investment environment, the treaty is expected to stimulate greater foreign direct investment (FDI) between India and Uzbekistan.

The signing of the BIT represents a significant milestone in India-Uzbekistan economic relations, further strengthening the growing partnership between the two nations. It will provide a boost to sectors such as manufacturing, infrastructure, and services, contributing to mutual economic growth.

In addition to attending the AIIB Annual Meeting and signing the BIT, Sitharaman will hold a series of high-level bilateral meetings with her counterparts from Uzbekistan, Qatar, China, and the AIIB President. These meetings will serve as an opportunity to discuss key issues related to economic cooperation, trade, and investment, while also exploring new avenues for collaboration in sectors such as energy, infrastructure, and finance.

A particularly significant meeting is expected when she calls on the President of Uzbekistan, Shavkat Mirziyoyev, where discussions will focus on deepening the strategic partnership between India and Uzbekistan. The bilateral ties between the two countries have strengthened over recent years, with Uzbekistan emerging as an important partner for India in Central Asia.

Discussions at India-Uzbekistan Business Forum

 During the visit, the Union Finance Minister will also participate in the India-Uzbekistan Business Forum discussions, which will bring together industry leaders and business representatives from both countries. The forum, jointly organized by business chambers from India and Uzbekistan, will focus on exploring trade opportunities, investment possibilities, and expanding market access.

The discussions at the forum are likely to emphasize sectors such as pharmaceuticals, textiles, agriculture, information technology, and renewable energy, where both nations see potential for cooperation. The forum will facilitate direct interactions between business leaders, helping to identify and overcome barriers to trade and investment.

Alongside her official engagements, Finance Minister Sitharaman will take part in several cultural and educational activities. She is scheduled to visit Samarkand State University, one of Uzbekistan’s leading educational institutions, where she will interact with faculty and students. This visit underscores the importance India places on educational collaboration and cultural exchanges, which form an essential part of India’s diplomacy in the region.

Additionally, the Finance Minister will visit the Lal Bahadur Shastri Monument in Tashkent, paying tribute to the former Indian Prime Minister who passed away in the city in 1966. 

She will also meet with representatives of the Indian diaspora in Uzbekistan, engaging with community leaders from various sectors. The Indian diaspora plays an important role in fostering closer ties between the two nations, contributing to trade, investment, and cultural exchanges.

India’s Commitment to Deepening Economic Ties With Central Asia

 India’s role as the second-largest shareholder in AIIB gives it significant influence over the bank’s decisions and policies. The upcoming Annual Meeting will provide India with an opportunity to advocate for a greater focus on sustainable and inclusive infrastructure projects, particularly in emerging economies. As AIIB seeks to expand its reach and impact, India’s leadership will be critical in shaping the bank’s future priorities.

Finance Minister Sitharaman’s visit comes at a time when global economic cooperation and multilateralism are more important than ever. The Finance Minister’s participation in the AIIB Annual Meeting, coupled with the signing of the BIT and other bilateral engagements, reflects India’s commitment to deepening its economic ties with Central Asia, while also strengthening its role in global development initiatives.

Her visit to Uzbekistan from September 24-28, 2024, marks a significant step in enhancing India’s role in global economic cooperation. Her participation in the AIIB Annual Meeting, the signing of the Bilateral Investment Treaty, and key bilateral discussions with global leaders will further cement India’s influence in shaping the future of sustainable infrastructure development in Asia and beyond.

To sum up, the visit is poised to strengthen India’s economic and diplomatic ties with Uzbekistan, as well as other key nations, while promoting long-term economic cooperation, fostering investment, and creating new opportunities for growth.