Central Asia, India Unlocking Untapped Trade and Investment Potential

A new report by the Eurasian Development Bank (EDB) urges Central Asian countries to deepen their economic and strategic cooperation with India, spotlighting a vast but underutilized opportunity for regional growth.

Titled “Assessment of Trade and Investment Relations between India and Central Asia: Unlocking Economic Potential,” the report highlights Central Asia’s strategic position as a vital land bridge between Asia and Europe - a unique advantage for India’s expanding global partnerships, The Caspian Post reports via Tajik media.

Despite this, trade remains limited: Central Asia makes up just 0.1 per cent of India’s foreign trade, while India accounts for only 1 per cent of Central Asia’s total trade. India primarily exports pharmaceuticals, electrical and mechanical equipment to the region, while importing oil products, fertilizers, and metals.

Key sectors ripe for growth include machine tools, transport vehicles, optical instruments, chemicals, and clothing from India, alongside mineral fuels, rare earth metals, and fertilizers from Central Asia. The report also points to promising joint ventures in petrochemicals, renewable energy, textiles, healthcare, and tourism - combining India’s technological expertise with Central Asia’s resources and markets.

To boost collaboration, EDB recommends streamlining trade procedures, enhancing transport logistics, expanding trade finance access for small and medium-sized enterprises (SMEs), and fostering active technological partnerships.

Experts say that with focused policies and stronger ties, India and Central Asia could turn their modest trade into a dynamic partnership - unlocking new economic opportunities across the region.