“Uzbekistan and India have

similar approaches to global,

regional issues”  

THE BLUE MOON presents an interview with the Ambassador of the Republic of Uzbekistan to India, Dr. Salikh R. Inagamov  : 

The relations with Uzbekistan have grown ever since the visit of Prime Minister, Jawahar Lal Nehru in 1955 and 1961 followed by the visit of Prime Minister, Lal Bahadur Shastri for the historic Tashkent Agreement. How strong are political ties today after the 1991 change and four visits of President Islam Karimov, the last in May 2011? 

Uzbekistan and India enjoy centuries long history of dynamic cooperation; civilization, cultural and spiritual exchanges. People of the two countries have traditionally been keenly interested in each other's culture, lifestyle, literature, language, songs and dances which even today reflect mutual influence of generations of bilateral relations. Even during Soviet times, which were the years of Uzbekistan's isolation from the world, relations between the two countries were quite vibrant with Indian Consulate General being stationed in Tashkent. Besides, Indian movie stars at all times were among the most loved and welcomed guests on Uzbek soil.

Uzbekistan was a venue for not only cultural events but important political processes which had enormous historical importance for the countries of the region. In particular, Indian people well know that the Tashkent Declaration of 1966 between India and Pakistan, which put an end to the armed conflict at that time, was signed in the capital of Uzbekistan.

During the years of Uzbekistan's independence we have been able to preserve the dynamics of our cooperation and establish firm legal framework comprising of 74 bilateral documents allowing to comprehensively develop relations and to swiftly solve any outstanding issues. We have put in place a mechanism of regular visits, meetings and exchanges at different levels which serves as a platform for discussing various issues as well as defining yet new spheres of cooperation.

Our countries do not have political differences. We have the same or similar approaches towards majority of global and regional issues. Uzbekistan and India have been actively cooperating within international structures, like the UN, SCO, ADB and others. Uzbekistan has supported India's candidature for the non-permanent seat of the UN Security Council for 2011-2012.

As far as regional politics are concerned, Uzbekistan and India are vitally interested in maintaining peace and stability in South and Central Asia – the two regions which have enormous potential in trade, economic, energy, transport and communication spheres. However, persisting instability in Afghanistan is hindering the full realization of our potential.

State visit of the President of Uzbekistan, Mr. Islam Karimov to India in May, 2011 became the most important event in relations of the two countries in recent years. Upon results of the meetings the two countries signed 34 documents including a joint statement declaring strategic partnership between Uzbekistan and India. The cost of economic package exceeded US$ 2.2 billions.   

What can you say about trade economic and investment cooperation between the two countries?  

I am especially pleased to note that in recent years we have been able to significantly diversify our economic ties. To be more precise, we have been dynamically developing cooperation in tourism, textile industry, pharmaceuticals, automobile component production, chemical industry and other sectors.

India is one of the large investors in Uzbekistan's economy. From 2007 to

2010 Indian FDI in the Uzbek economy totalled US$ 33.5 million. This year we have been implementing 2 projects with Indian FDI. 

First project – worth US$143.78 million – is implemented by Spentex Industries in the textile industry. Another project worth US$25 million was initiated by the Minda Group which is operating in automobile component production.

Over the last few years we have been able to ensure growth and

diversify of our trade. In 2010 it increased by 20.5 per cent totalling US$ 150.7 million. Of this US$ 27.2 million is Indian import from Uzbekistan while US$ 123.5 million is Indian export to Uzbekistan. Currently 18 Indian companies have their offices in Uzbekistan while 62 companies with Indian capital, including 11 companies with 100 per cent foreign capital are operating in the country. 

How good is the investment climate in Uzbekistan for Indian investors? 

Measures for improving the investment environment, which are taken in the country, have significantly increased volume of foreign direct investment. Over the years of reforms, the total amount of investments in the economy of Uzbekistan exceeded US$ 100 billion, 35 billion of which are foreign investments. Growth of foreign investments inflow in 2010 rose by 10.6 per cent and accounted US$ 3.77 billion. Uzbekistan possesses enormous huge investment capacity, and existing infrastructure provides an opportunity to consume a tremendous volume of foreign investments. Annual investment capacity of Uzbek market amounts for 5-6 billion US dollars of foreign investments. In 2010, Uzbekistan used investments for US$ 9.7 billion, which is 13.6 per cent more compared to 2009 or 25 per cent of the country's GDP. 1098 new production facilities have been introduced; implementation of 296 investment projects has been completed. About 72 per cent of investments were directed to construction of production capacities, including about 38 per cent to purchase of equipment and technologies.

Nowadays, more than 4200 enterprises with foreign investments, including world famous TNCs operate on Uzbek market. Among them: Korean Kogas, Malaysian Petronas, South African Sasol, Chinese CNPC and many others are successfully engaged in the oil and gas sector; General Motors Corp., Japanese ISUZU Motors, German company MAN, Mercedes Benz producing cars, buses and trucks; Swiss Nestle, American Coca-Cola, British-American Tobacco, Dutch Carlsberg and other companies operate in the food industry; Sumitomo Corporation, Korea Telecom and many others are participating in the telecommunication sector.

As for the attractiveness of Uzbekistan for foreign investors, I can draw attention to the fact that Uzbekistan has political stability, confidence in the future and consistent reforms in all spheres of social and political life. This is the country where representatives of more than hundred ethnic groups and dozen religions live in peace and harmony. Uzbekistan is a leading industrial country in Central Asia with the fastest growing economy, one of the leading countries of the world on reserves of copper, silver, gold, lead, zinc, tungsten, natural gas and other minerals. This is a country which in advance has ensured its energy security.

Uzbekistan has one of the best transport infrastructures in the region with 6.5 thousand km of railways, over 43.5 thousand km of highways and developed air communication network which connects the most remote regions and uninhabited areas of the country to the major centers, providing access to international transport systems and basic natural mineral and raw materials resources in the country.

We have enacted one of the best investment regimes, with 10 per cent rate of corporate income tax and other incentives and privileges, given for the foreign investors, including tax exemption on property, income and the customs duties. 

The Uzbek Airways flies directly in to India, Delhi and Amritsar, how good is the number of passengers? What is the passenger profile? 

In cooperation with our Indian partners we have been able to consistently increase the number of Uzbekistan Airways flights en-route Tashkent-Delhi-Tashkent and Tashken-Amritsar-Tashkent.

Now we have four passenger flights a week from Delhi. Starting from September 17, 2011 it will add one more and there will be five passenger flights from Delhi to Tashkent and two cargo flights on the same route. From Amritsar we have three passenger flights a week.  Besides this, the launching of the new flight from Tashkent and Samarkand to Mumbai is on the agenda.

As for the number of passengers travelling with Uzbekistan Airways I can say that  from January to June, 2011 this number totalled 22,851 passengers of which 11,106 passengers are inbound and 11,745 passengers are outbound. The number of direct outbound passengers totals 9,581 of which 90 per cent are Indian tourists. 

How good is the growth of tourism between the two countries? 

India is gradually becoming our number one partner in tourism. In 2010 over 7250 Indian tourists visited  Uzbekistan and we hope that in 2011 this number will cross the 10,000 mark. Among the most popular destinations for Indian tourist are of course Tashkent, Samarkand, Bukhara and Khiva cities.

Besides, during the visit of the President of the Republic of Uzbekistan, Mr. Islam Karimov to India in May this year, the leaders of our countries discussed the ways of enhancing cooperation in the sphere of tourism.

I believe our readers will be interested to know that within the framework of the visit “Uzbektourism” National Company of Uzbekistan and Indian Tourism Development Corporation signed an Action plan on tourism cooperation between the two countries.

The document envisages enhancing of cooperation in the area of tourism, including establishing tourism offices and increasing the number of flights between the two countries. Also our Indian partners offered their assistance in human resource development to meet Uzbekistan's tourism requirements. The Action plan also aims to encourage more exchanges of media to highlight the tourism potential in the two countries, and explore the possibilities of setting up of joint ventures in travel and tourism sector.

We believe that this document will be a roadmap for further enhancing and widening mutually beneficial ties of the two countries in the sphere of tourism.

Thank you.