India’s ties with Central Asia are becoming more important as global politics change. The spotlight on Tajikistan’s Ayni airbase, India’s former overseas military base, shows the region’s strategic value. Central Asian countries are balancing relationships with Russia, China, and the US, while India uses its historical, cultural, and security connections to stay influential and pursue economic and strategic goals.
Central Asia Region
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Evolution of India-Central Asia Relations
| Ancient & Medieval Periods | Trade along the Silk Route and the spread of Buddhism created strong cultural and intellectual links. Many medieval Indian rulers, including the Mughals, came from Central Asia, deepening these historical ties. |
| Post-1991 (Post-USSR) | Five Central Asian nations became independent; India quickly established diplomatic relations (1991–92). Engagement was limited in the 1990s but increased from the 2000s |
| Key Milestones |
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Significance of the Central Asian Region for India
- Geostrategic Significance: Situated at the heart of Eurasia, Central Asia acts as a land bridge connecting Europe and Asia. Its stability is crucial for India’s extended neighbourhood policy, particularly amid China’s Belt and Road Initiative (BRI) and Russia’s regional influence.
- Energy and Mineral Security: The region is rich in hydrocarbons, uranium, and rare earth elements. Kazakhstan is a leading uranium producer, and Uzbekistan has significant uranium reserves. Turkmenistan’s natural gas reserves are vital for India’s energy diversification strategy. Initiatives like the TAPI pipeline, though stalled, reflect India’s long-term energy engagement.
- Security Cooperation: Terrorism, drug trafficking, and radicalization are shared concerns, especially following the Taliban’s return to power in Afghanistan. Joint efforts in counterterrorism, intelligence sharing, and military exercises (DUSTLIK, KAZIND) enhance regional security collaboration.
- Trade and Investment Potential: Bilateral trade between India and Central Asia reached around $1.7 billion in 2023, up from $500 million in 2010, with pharmaceuticals leading exports and Kazakhstan as the main source of imports. Since 2010, India has invested about $1.5 billion in the region, mainly in coal, oil, and gas, though investment from Central Asia to India remains limited.
- Cultural and Soft Power Influence: India has strong cultural and spiritual ties with Central Asia through shared Sufi and Buddhist heritage. It promotes its soft power using cinema, cuisine, yoga, and traditional medicine, while initiatives like Project Mausam strengthen cultural and maritime connections in the region.
Initiatives to Boost India-Central Asia Relations
1. Connectivity and Trade Corridors:
- International North-South Transport Corridor (INSTC): Launched with Iran and Russia in 2000, now expanded to include Central Asian countries, facilitating cargo movement and reducing trade costs.
- Chabahar Port: Developed with Iran since 2003 to bypass Pakistan, though US sanctions on Iran delayed implementation.
- Ashgabat Agreement: India, along with all five Central Asian Republics, is a party to this agreement, promoting multi-modal transport networks to enhance connectivity.
- TAPI Pipeline: Intended to transport Turkmen gas to India via Afghanistan and Pakistan; stalled due to regional security issues.
2. Economic and Technological Collaboration
- Trade and Investment: Bilateral trade between India and Central Asia reached approximately $1.7 billion in 2023, with potential for growth in sectors like pharmaceuticals, information technology, and agriculture.
- Digital Public Infrastructure: India has introduced its digital governance models, such as Aadhaar and UPI, to Central Asian countries, promoting e-governance and financial inclusion.
- Capacity Building: Through the Indian Technical and Economic Cooperation (ITEC) program, India offers training and scholarships in various fields, enhancing human resource development in Central Asia.
3. Defence and Security Cooperation:
- Strategic Partnership Agreements (SPA): Signed with Kazakhstan, Tajikistan, and Uzbekistan to deepen defence and trade ties.
- Military Exercises: Joint exercises, such as KAZIND-2024, and cooperation at Ayni Airbase in Tajikistan, enhance interoperability and strengthen defence relations
- NSA-Level Consultations: Institutionalized dialogue on counterterrorism, Afghanistan, and regional stability.
- Multilateral Engagement: India leverages platforms like the Shanghai Cooperation Organization (SCO), Conference on Interaction and Confidence-Building Measures in Asia (CICA), and DAKSHIN (Global South knowledge exchange) to maintain continuous engagement with Central Asian countries
4. Science, Innovation & Critical Minerals
- Rare Earth Forum: The first India-Central Asia Rare Earth Forum was held in September 2024 in New Delhi, focusing on joint exploration and cooperation in critical minerals.
- Space Technology Cooperation: Collaborations in space technology and innovation enhance strategic and economic ties between India and Central Asia.
5. Cultural Diplomacy
- Youth Exchange Programs: India hosted the third Central Asian Youth Delegation from 22nd to 28th March 2025, fostering youth collaboration and cultural exchange.
- Cultural Centers and Initiatives: Promotion of Indian cultural centers, Sanskrit chairs, and youth exchange programs strengthen people-to-people connections.
Challenges in India-Central Asia Relations
- Geography and Connectivity- India has no direct land border with Central Asia and depends on third countries for access. Projects like the INSTC and Chabahar Port are still partially operational, and air connectivity is limited and costly.
- Low Trade Volumes- Bilateral trade is around $1.7 billion in 2023, far below China’s $100 billion with the region. High logistics costs, tariff barriers, and banking challenges restrict growth.
- Chinese Dominance- China’s Belt and Road Initiative (BRI) and CPEC investments in Central Asia are faster and larger, overshadowing India’s presence.
- Security Concerns- The Taliban’s control in Afghanistan increases risks from terrorism, drug trafficking, and arms smuggling. India lacks direct hard-security influence in the region.
- Political and Bureaucratic Hurdles- Authoritarian regimes, opaque regulations, language barriers, and limited transparency make business and diplomatic engagement difficult.
- Limited People-to-People Links- Despite shared cultural and spiritual heritage, exchanges in education, tourism, and culture remain weak, limiting deeper connections.
- Financial and Banking Gaps- Lack of direct banking channels hampers trade, remittances, and currency conversion. Joint financial working groups are still in early stages.
Way Forward
- Enhance Connectivity- Make INSTC and Chabahar Port fully operational, develop multimodal transport corridors, digitize customs processes, and encourage full participation of Turkmenistan and Uzbekistan to strengthen regional links.
- Secure Energy and Minerals- Resume TAPI pipeline discussions once Afghanistan stabilizes, collaborate on rare earth exploration, and ensure long-term uranium supply agreements with Kazakhstan to support India’s energy and strategic needs.
- Strengthen Financial and Trade Links- Create a joint financial connectivity group, promote rupee settlements and digital payments, and enhance business-to-business engagement through the India–Central Asia Business Council (ICABC).
- Promote Digital Cooperation- Share India Stack and digital governance solutions, roll out pilot Digital Public Infrastructure (DPI) programs, and deepen collaboration through the India–Central Asia Digital Partnership Forum.
- Develop Human Capital- Expand ITEC scholarships, vocational training, and medical fellowships, while supporting Indian university campuses and joint research initiatives to build skills and promote innovation.
- Enhance Security Cooperation- Institutionalize NSA-level consultations, conduct joint training in counterterrorism and cybersecurity, and use platforms like SCO and bilateral mechanisms to address regional security challenges.
- Deepen Cultural and Trade Ties- Strengthen cultural centers, Sanskrit chairs, and youth exchange programs, hold regular Culture Ministers’ Meetings, and expand trade and investment in sectors like IT, pharmaceuticals, tourism, and energy.
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