Islamabad : Monitoring Desk – Indian Foreign Minister, Dr. S. Jaishankar hosted a high-level meeting at 4th edition of the ‘India Central Asia Dialogue’ to explore economic growth opportunities and strengthen India-Central Asia relations.
Key Highlights of the Meeting
Strengthening Financial Cooperation: EAM highlighted the opening of special rupee vostro accounts by Central Asian banks in Indian financial institutions, facilitating seamless transactions.
It included the potential use of India’s UPI for cross-border payments, enhancing financial integration.
Boosting Trade & Connectivity: The Central Asian leaders stressed the importance of diversifying trade baskets to ensure sustainable and predictable economic interactions.
EAM emphasized the need to expand air services and streamline transit procedures, making trade more efficient.
Commitment from Central Asian Nations:
Kazakhstan praised India’s innovation-driven business community, expressing commitment to deepening economic ties.
Kyrgyzstan reaffirmed the strategic partnership between India and Central Asia, highlighting the potential for mutual growth.
Turkmenistan described India as a major and promising partner, recognizing its role in shaping a modern geo-economic architecture in Asia.
About Central Asia
The five Central Asian Republics (CARS) viz Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan.These countries attained independence on the disintegration of the Soviet Union in 1991. All the 5 countries are land-locked. All the five countries are richly endowed with natural and mineral resources.
Kazakhstan has huge commercially viable quantities of most minerals like coal, oil, gas, uranium, gold, lead, zinc, iron ore, tin, copper, manganese, chromite, bauxite and several more.
Turkmenistan contains the world’s fourth largest reserves of natural gas while having significant quantities of cotton, uranium, petroleum, salt and sulfur.
Uzbekistan is richly endowed with gas, uranium, cotton, silver and gold.
Tajikistan and Kyrgyzstan have significant supplies of fresh water.
Kyrgyzstan has significant reserves of gold, uranium, mercury and lead.
India’s engagement with Central Asia has evolved into a strategic partnership, focusing on trade, connectivity, security, and cultural exchange.
India-Central Asia Ties
Early Times: India has several millennia old historical, cultural and civilisational links with Central Asia.
Brisk trade of goods, ideas and thoughts took place from India (and China) to Central Asia and beyond over the Silk Road from 3rd century BC to 15th century AD.
Buddhism travelled to Afghanistan, Central Asia and Western China from India through the Silk Road.
Alexander of Macedonia, Kushans, Babar, Mughals and Sufism are evidence of vigorous links between India and the Central Asian region over the ages.
Trade & Economic Cooperation: India and Central Asia focus on energy, pharmaceuticals, textiles, and technology.
Both have emphasized the need for greater investment and trade facilitation, particularly through Chabahar Port.
Connectivity & Infrastructure Development: India is actively promoting regional connectivity through initiatives like the International North-South Transport Corridor (INSTC) and air service expansion.
Security & Geopolitical Collaboration: Both share concerns over regional security, particularly in counter-terrorism and stability in Afghanistan.
The India-Central Asia Dialogue has strengthened cooperation in defense, intelligence sharing, and cybersecurity, ensuring a secure and stable regional environment.
Cultural & Educational Exchange: Both continue to flourish through student exchanges, tourism, and diplomatic initiatives.
Indian universities attract thousands of Central Asian students, fostering strong people-to-people connections.
Strategic Challenges in India-Central Asia Relations
Trade Barriers & Limited Economic Integration: India’s trade with Central Asia hovers below $2 billion annually—negligible compared to China’s ~$50 billion with the region.
Logistical challenges, high tariffs, and regulatory complexities continue to limit trade expansion.
Connectivity & Infrastructure Bottlenecks: Transit inefficiencies, bureaucratic delays, and geopolitical tensions slow progress.
The lack of direct land access to Central Asia further complicates trade routes.
Security & Geopolitical Challenges: Concerns over regional security, particularly in counter-terrorism and stability in Afghanistan.
China’s growing influence in the region and Pakistan’s strategic positioning create diplomatic hurdles.
Financial & Digital Integration Issues: Regulatory misalignment and limited banking infrastructure in Central Asia pose challenges to seamless financial transactions.
Way Ahead
Infrastructure and Connectivity: Accelerate Chabahar Port Phase-2 and Chabahar-Zahedan rail link.
Expand cooperation on the International North-South Transport Corridor (INSTC), linking Mumbai to Central Asia via Iran and the Caucasus.
Institutional Strengthening: Create a Central Asia Task Force within the MEA.
Regularise the India-Central Asia Dialogue and Leaders’ Summits.
Trade and Economic Diplomacy: Work towards a Central Asia-India FTA or regional trade pact.
Energy Cooperation: Explore partnerships in green hydrogen, solar energy, and critical minerals. Re-engage with the TAPI pipeline diplomatically.
Multilateral Engagement: Propose SCO-led initiatives on cybersecurity, counterterrorism, and health diplomacy.
Soft Power and Cultural Diplomacy: Expand ICCR scholarships, host cultural festivals, and promote Bollywood and yoga diplomacy.
Establish India-funded centres of excellence in education and technology.
