“Textile Insights”: Uzbekistan emerges as a key strategic partner for Indian business in Central Asia
January 13, 2026. 09:00 • 3 min
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DEHLI, January 13. /Dunyo IA/. Against the backdrop of the dynamic growth of business interest of Indian entrepreneurs in Uzbekistan, the specialized Indian publication “Textile Insights” published two analytical materials revealing the large-scale transformation of our country's textile industry, reports Dunyo IA correspondent.
These publications highlight the key drivers of growth that are positioning Uzbekistan as an attractive partner for international investment, including from India.
In the article titled, “Uzbekistan reboots cotton with tech And mechanization”, experts from the publication analyse the far-reaching reforms underway in Uzbekistan’s cotton sector. They note that the country has made a significant breakthrough by fully eliminating forced labour and transitioning to a cluster-based management system.
A key factor enhancing Uzbekistan’s appeal for Indian investors is the adoption of advanced technologies. The publication places particular emphasis on the mechanisation of cotton harvesting and the introduction of drip irrigation systems.
For Indian companies with advanced expertise in agri-tech, this opens up promising opportunities for the establishment of joint ventures. “Uzbekistan’s cotton sector is scripting a quiet but consequential comeback, one driven less by acreage expansion and more by technology, mechanisation and policy recalibration. Despite a sharp reduction in planted area, the country is set to deliver a stronger-than-expected cotton output in the 2025/26 season, highlighting a structural shift in how one of the world’s most storied cotton producers now grows, harvests and monetises its fibre”, - “Textile Insights” notes.
The second publication, titled “Uzbekistan targets US$ 2 bn in new investment to accelerate textile industry growth”, offers a detailed examination of Tashkent’s investment strategy aimed at accelerating the development of the textile sector.
It is noted that India’s business community is closely monitoring Uzbekistan’s ambition to attract an additional US$2 billion in investment into its textile industry. India, one of the world’s leading producers of textiles and apparel, increasingly views Uzbekistan as a strategic regional hub.
The publication underscores that Uzbekistan is offering highly competitive conditions for investors, including tax incentives, ready-made infrastructure within industrial and technology parks, and preferential access to the markets of Europe and the Commonwealth of Independent States (CIS). These factors are encouraging Indian entrepreneurs to relocate production facilities to the republic and to develop high value-added products under the “Made in Uzbekistan” label.
Interest from Indian media and business is backed by concrete figures, highlighting a significant elevation in bilateral relations between the two countries.
The year 2025 marked a historic milestone in economic partnership: for the first time, bilateral trade surpassed the symbolic threshold of US$1 billion. The growth trajectory remains strong - by the end of January-November alone, trade had already reached over US$1.2 billion.
Today, Uzbekistan and India are linked not only through mutually beneficial trade but also via deepening industrial cooperation. Currently, 24 joint investment projects with Indian partners are underway in Uzbekistan, with a combined value exceeding US$1.13 billion.
Capital deployment is progressing at full pace. To date, nearly US$270 million in Indian direct investment has been realised, targeting sectors including textiles, pharmaceuticals, information technology, agriculture, education and others.
Analysis by Textile Insights confirms that Indian businesses increasingly view Uzbekistan as a key partner in Central Asia. The combination of Uzbek reforms and Indian technological expertise, supported at the highest levels of government, is laying a solid foundation for continued growth and strategic collaboration.
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