Jaishankar urges stronger trade ties with Central Asia
New Delhi: In a significant outreach to strengthen economic engagement with Central Asia, External Affairs Minister S Jaishankar on Thursday underscored the untapped potential in trade and investment between India and the region.
Speaking at the India-Central Asia Business Council in New Delhi—an event attended by top dignitaries from Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan—Jaishankar laid out a roadmap for deeper commercial collaboration. Despite a positive trajectory in trade over the past decade, Jaishankar noted that current figures fall short of reflecting the true potential between India and Central Asia. In the context of global economic uncertainties, he stressed the urgency of building more resilient and diversified economic partnerships.
“The strong presence of business delegates from both sides clearly signals a mutual interest in advancing B2B ties,” Jaishankar said, adding that India views the Central Asian nations as an extension of its neighbourhood with strategic and economic significance.
The event was attended by high-level representatives, including Kazakhstan’s Deputy Prime Minister Murat Nurtleu and the foreign ministers of the Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan.
The minister emphasized the need to expand the volume and diversity of trade. He encouraged Central Asian partners to explore new sectors, driven by India’s fast-growing economy—now valued at over $4 trillion and expanding at 6-8 percent annually. As India’s economy grows, it will inevitably generate fresh demand for a range of goods and services. This presents an opportunity for our Central Asian partners to position themselves strategically, he said.
To provide more stability in economic relations, Jaishankar called for long-term commercial agreements across sectors such as energy, mining, and fertilizers. He specifically highlighted the importance of predictability in key areas like uranium, crude oil gas, coal, and minerals. Jaishankar also pointed to India’s advancements in digital infrastructure, especially the Unified Payments Interface (UPI), as a potential model for cross-border cooperation.
He proposed increased collaboration in fintech, suggesting that closer ties between banking institutions could ease trade settlements and enhance financial interlinkages.
“Initial steps, such as the opening of special rupee Vostro accounts by Central Asian banks in India, are promising. Further discussions on using UPI and national currencies for trade settlements should be actively pursued,” he said.
Vostro accounts allow foreign banks to hold rupee deposits with Indian counterparts, simplifying international transactions and reducing dependency on third currencies.
On connectivity, Jaishankar made a strong case for leveraging the Chabahar port in Iran as a trade corridor that could significantly shorten transit routes and reduce costs. He urged FICCI—the industry body co-hosting the event—to engage with Central Asian chambers of commerce to identify and resolve logistical barriers, including cumbersome customs procedures.
“Improving land and air connectivity, along with simplifying cross-border trade regulations, is vital for our economic ambitions,” he stated. Concluding his remarks, the External Affairs Minister expressed hope for an India-Central Asia Leaders’ Summit in the near future—though he refrained from announcing a specific timeline.
Established in 2020 under the India-Central Asia Dialogue framework, the Business Council serves as a platform to enhance regional trade cooperation.
