Comparative Analysis of Indian Investment in Central Asia and Its Relevance for Uzbekistan

This report (2025) reviews recent trends in Indian foreign direct investment (FDI) across Central Asia (Kazakhstan, Uzbekistan, Turkmenistan, Kyrgyzstan, Tajikistan) and draws lessons for Uzbekistan. It finds that overall Indian FDI remains modest – Kazakhstan leads with roughly $460 million total since 2005[1], and flows of only ~$30 million in 2023[1]. Uzbekistan follows (cumulative ~$350 M as of 2024[2]), while the other countries have seen negligible Indian equity investment (Kyrgyzstan: ~$1.9 M in Q1 2025[3]; Tajikistan and Turkmenistan: near-zero). Indian companies are active mainly in natural resources, manufacturing, and services: e.g. Kazakhstan hosts over 600 Indian firms in pharmaceuticals, mining, and food processing[4]; Uzbekistan has seen Indian entries in pharma, education and auto components[5]. Investment climates vary widely: Kazakhstan and Uzbekistan have introduced investor-friendly reforms (one-stop agencies, SEZ incentives, BITs) that ease market entry, whereas Turkmenistan and Tajikistan remain highly restrictive. The report includes a comparative table of FDI flows, key sectors, special zone incentives, and institutional features. Drawing on Kazakhstan and Uzbekistan’s experience, we recommend Uzbekistan further strengthen its legal framework, streamline taxes and SEZ benefits, and proactively market opportunities (especially in IT, pharma and green energy) to Indian investors.