India’s Trade and Investment Ties with the Commonwealth of Independent States

We profile the progress in bilateral and trade relations between India and the Commonwealth of Independent States (CIS). There remains significant and relatively untapped potential for economic and strategic engagement between these regions.

Indian investments in the member countries of the Commonwealth of Independent States (CIS) have significantly increased in recent years, particularly in the energy, diamonds, and gold sectors.

Positioned strategically between Asia and Europe, the CIS region is ideal for supporting India’s expanding interests in energy and natural resources.

Brief on the CIS and its relations with India

The Commonwealth of Independent States was formed in 1991 to promote cooperation among former USSR states (excluding the Baltic nations) in areas such as trade, military policy, and border recognition. The CIS member countries are:

1. Armenia
2. Azerbaijan
3. Belarus
4. Georgia
5. Kazakhstan
6. Kyrghyzstan
7. Moldova
8. Russia
9. Tajikistan
10. Turkmenistan
11. Ukraine
12. Uzbekistan

The Central Asian Republics (CAR) within the CIS—Kazakhstan, Uzbekistan, Kyrgyzstan, Turkmenistan, and Tajikistan—are geographically part of Asia.

India’s relationship with CIS countries has remained positive since the Soviet era, though trade and economic relations have not grown proportionally. As of financial year (FY) 2023-24, CIS nations account for 1.28 percent of India’s exports and 9.16 percent of its imports.

As per India’s Ministry of Commerce and Industry, trade challenges with CIS nations include long distances, language barriers, limited transport options, lack of business information, insufficient direct interaction among businesses, and inadequate banking services in the region.

To tap into the CIS region’s potential and address India’s limited market presence, the “Focus CIS Programme” was launched on April 1, 2003, by the country’s Commerce & Industry Ministry as part of its Export-Import (EXIM) Policy. The initial phase targeted seven countries—Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan. In April 2004, the program expanded to cover the entire CIS region, including Russia, Armenia, Belarus, Georgia, and Moldova.

Recent trade promotion activities between India and CIS countries

India has engaged in several trade and economic cooperation activities with CIS countries through Inter-Governmental Commissions (IGCs), Joint Working Groups (JWGs), and Sub-Working Groups (SWGs). These meetings, focused on enhancing trade ties, addressing barriers, and exploring economic collaboration, include:

• India-Ukraine Working Group: The 5th meeting of the India-Ukraine Working Group on Trade and Economic Cooperation took place on May 15, 2024, via video conferencing.
• India-Tajikistan Joint Commission: The 11th session of the India-Tajikistan Joint Commission Meeting was held in New Delhi from February 24-25, 2020.
• India-Kazakhstan Working Group: The 7th session of the India-Kazakhstan Joint Working Group on Trade and Economic Cooperation convened on September 10, 2020, via video conference.
• India-Uzbekistan Joint Working Group: The second Joint Working Group meeting between India and Uzbekistan on Trade and Economic Cooperation was held on June 22, 2022, in Uzbekistan.
• India-Uzbekistan Inter-Governmental Commission: The 13th session of the India-Uzbekistan Inter-Governmental Commission on Trade, Economic, Scientific, and Technological Cooperation took place on July 28, 2022, in New Delhi.
• India-Kyrgyzstan Inter-Governmental Commission: The 10th session was held on November 3, 2022, via video conference.
• India-Russia Sub-Working Group: The 3rd meeting of the India-Russia Sub-Working Group on eliminating trade, economic, and investment barriers occurred on December 22, 2022, over video conference.
• India-Russia Working Group: The 24th session of the India-Russia Working Group was held on March 24, 2023, via video conference.
• India-Azerbaijan Inter-Governmental Commission: The 6th meeting of the India-Azerbaijan Inter-Governmental Commission on Trade, Economic, Scientific, and Technological Cooperation was conducted in Baku, Azerbaijan, on October 25, 2023.

These meetings have focused on fostering bilateral trade, addressing market access barriers, and strengthening India’s economic partnerships with CIS countries across various sectors, paving the way for deeper collaboration in science, technology, and investment.

Source: Ministry of Commerce and Industry, GoI

Source: Ministry of Commerce and Industry, GoI

Source: Ministry of Commerce and Industry, GoI

Source: Ministry of Commerce and Industry, GoI

Status of trade agreements and negotiations

Source: Ministry of Commerce and Industry, GoI

Trade Agreement with EAEU

The Eurasian Economic Union (EAEU), consisting of Russia, Kazakhstan, Belarus, Armenia, and Kyrgyzstan, has been among key focus areas for advancing India’s trade strategy. India and the EAEU agreed to initiate negotiations for a Trade Agreement covering trade in goods. The initial meeting, scheduled for March 16-18, 2020 in Moscow, was postponed due to the COVID-19 pandemic. However, on August 28, 2020, India’s Commerce Secretary held discussions with Andrey Slepnev, the Trade Minister of the Eurasian Economic Commission, to address preliminary issues for the trade talks. A follow-up meeting on October 13, 2020, between the chief negotiators, focused on establishing the agenda for the first round of trade negotiations. At present, India’s Ministry of Commerce is considering the EAEU’s wish list, the final Terms of Reference (ToR), and drafting the text for various chapters of the proposed agreement.

Free Trade Agreement (FTA) with Georgia

India and Georgia are working towards establishing an FTA, with a Joint Feasibility Study (JFS) completed in August 2018. Both nations accepted the findings, and on January 11, 2019, they signed a protocol to initiate FTA negotiations. India is currently completing procedural formalities to advance these discussions further.

Preferential Trade Agreement (PTA) with Uzbekistan

On September 25, 2019, India and Uzbekistan signed a Joint Statement in Tashkent, launching a Joint Feasibility Study (JFS) to explore the possibility of a PTA. The feasibility study report has been submitted and is under review by the Indian government to determine the next steps.

Promotional measures – MDA and MAI Proposals 

To enhance trade relations, the Indian Ministry of Commerce is facilitating trade promotional activities. For 2024-25, 62 proposals from various trade bodies were submitted via the Market Access Initiative (MAI) portal, with 59 recommended by the FT(CIS) Division. Similarly, for 2025-26, 59 proposals were submitted, with 52 receiving recommendations. These initiatives aim to strengthen India’s trade engagement with CIS and other Eurasian countries, supporting India’s growing presence in these markets.

These agreements and promotional measures signal India’s commitment to strengthening trade ties with the EAEU, Georgia, and Uzbekistan, building on its strategic interests in the Eurasian region.

India’s “Silk Route in the Sky” ambitions with CIS countries

Indian investments in the CIS region have grown considerably, especially in sectors such as energy, diamonds, and gold. The CIS region, rich in resources from agriculture to oil and gas reserves, offers substantial potential for expanded trade and investment ties with India.

With strategic positioning at the Asia-Europe crossroads, CIS countries are well-placed to support India’s growing commercial interests, especially in energy and natural resources. Enhancing both land and air connectivity can further solidify India’s economic and development collaborations with these nations. For instance, fostering air links—India’s “Silk Route in the Sky”—and advancing digital connectivity initiatives are viewed as transformative for the region. Economic corridors aimed at integrating technology, logistics, and other support services can help diversify CIS industries and enhance global competitiveness.

The development of multimodal routes such as the International North-South Transport Corridor (INSTC) represents a new era in land-sea connectivity to CIS countries, offering an efficient and robust trade route. Air connectivity agreements are expected to complement this progress, opening avenues for India’s aviation sector in CIS markets.

India’s DTAA framework with CIS members

Source: India Briefing; Income Tax Department, GoI.

India-CIS bilateral trade relations by country

India-Armenia

India and Armenia have a trade agreement, but the trade volume has remained limited. In 2002, India’s exports to Armenia, amounted to approximately US$5.6 million. As of FY2023-24, trade volume between India and Armenia was recorded at US$94 million.

India and Armenia engage in diplomatic dialogue through Foreign Office Consultations (FOC) and the Inter-Governmental Commission (IGC) on Trade, Economic, Scientific and Technological, Cultural, and Educational Cooperation. The most recent of these meetings was the 10th round of FOC, held in New Delhi on November 18, 2023.

India’s primary exports to Armenia are diamonds, electrical apparatus, bovine meat, tobacco products, and pharmaceuticals, while imports include gold, unwrought lead, medical instruments, precious stones, and optical fiber cables. Although there are currently no major Indian investments in Armenia, efforts to enhance trade and investment are ongoing.

In June 2021, Invest India and Armenia’s Investment Support Centre signed an MoU to foster business cooperation, and several business delegations have visited Armenia to explore trade opportunities.

During the India International Science Festival (IISF), held in January 2024, India’s National Innovation Foundation signed an MoU with Armenia’s National Center for Innovation and Entrepreneurship to enhance collaboration in innovation and entrepreneurship.

India-Azerbaijan

India and Azerbaijan maintain cordial diplomatic and economic relations, primarily based on oil and gas trade. India imports crude oil from Azerbaijan, a crucial part of their trade relationship. Azerbaijan, a member of the INSTC supports India’s connectivity projects to enhance trade links to Central Asia and beyond. Indian exports to Azerbaijan include pharmaceuticals, machinery, electronic equipment, textiles, tea, and spices, while Azerbaijan primarily exports energy resources to India.

India-Belarus

India and Belarus enjoy a robust partnership marked by economic cooperation and strategic collaboration. According to Indian Embassy in Minsk, Belarus, in 2023, trade between India and Belarus reached US$111.8 million, with a trade balance favoring Belarus, which is a key supplier of potash fertilizers to India. At the 11^th Inter-Governmental Commission (IGC) session, which took place in New Delhi in November 2022, the two nations reportedly reaffirmed their aim to diversify and deepen economic ties.

Recent joint initiatives include the second meetings of the Joint Working Groups on Pharma (August 2023) and Textiles (September 2023). To boost collaboration, India extended a US$100 million Line of Credit to Belarus in 2015 and granted Market Economy Status the same year.

Business exchanges are frequent, with delegations from India and Belarus participating in exhibitions and forums, such as the India-Belarus Business Forum (March 2023) and World Food India (November 2023). According to industry leaders, Belarus also offers a growing market for India’s pharmaceuticals, chemicals, and automotive products, with potential joint ventures in industrial equipment manufacturing and power generation.

India-Georgia

Since establishing diplomatic ties in 1992, India and Georgia have built trade and cultural links through the Indian Council for Cultural Relations and the Indian Technical and Economic Cooperation. In 2006, bilateral trade was valued at about US$20.5 million, with India consistently exporting more than it imports from Georgia. By FY2023-24, the trade volume had grown significantly to US$197.49 million.

The countries held their first Inter-Governmental Commission (IGC) meeting in New Delhi on April 29, 2014, which was followed by a Business Forum organized by FICCI, where both nations presented trade and investment opportunities. Subsequent IGC sessions were held in Tbilisi in July 2016 and New Delhi in September 2017.

India-Kazakhstan

Kazakhstan is a vital economic partner for India in Central Asia, especially in energy collaboration. India invests significantly in Kazakhstan’s oil and gas sectors, while Kazakhstan supplies India with oil, uranium, and minerals. India exports pharmaceuticals, machinery, textiles, tea, and food products to Kazakhstan. Both countries support regional trade enhancement, with India a member of the INSTC, and Kazakhstan actively participating in its development. Areas of cooperation have expanded to defense, space research, and IT.

Other engagements and initiatives:

• In August 2022, FICCI hosted an India-Central Asia virtual conference on energy.
• In December 2022, Kazakhstan’s Security Council Secretary led a delegation for the India-Central Asia Meeting of Security Council Secretaries in New Delhi.
• Youth delegations from Kazakhstan attended programs in India in November 2022 and March 2024.
• The first meeting of the Joint Working Group on Afghanistan was held in New Delhi in March 2023.
• The India-Central Asia Culture Ministers’ Meeting, hosted by India in April 2023, included Kazakhstan’s Culture and Sports Minister.
• The first meeting of the Joint Working Group on Chabahar Port took place in Mumbai in April 2023, where Kazakhstan invited India to join the North-South Roadmap.

India-Kyrgyzstan

India and Kyrgyzstan share a long-standing friendship, deepened by cultural and economic exchanges. Trade remains limited, with India mainly exporting pharmaceuticals, textiles, and machinery, while Kyrgyzstan exports agricultural products and minerals. India’s programs, such as the Indian Technical and Economic Cooperation (ITEC), support Kyrgyzstan’s skill-building and infrastructure. Both nations are committed to increasing trade, including through the INSTC, and are expanding partnerships in education, healthcare, tourism, and defense.

Bilateral Cooperation and the IKIGC

The India-Kyrgyz Inter-Governmental Commission (IKIGC) on Trade, Economic, Scientific, and Technological Cooperation, established in 1992, held its 10th session virtually in November 2022, co-chaired by Indian Minister Piyush Goyal and Kyrgyz Minister Talantbek Oruskulovich Imanov. The two leaders held discussions on expanding bilateral trade, along with negotiations covering areas such as investment, digitalization, agriculture, healthcare, textiles, environment, banking, and power. Both countries emphasized increasing trade and investment and promoting greater interaction between exporters and importers through trade expos.

Financial assistance and development projects

During the India-Central Asia Dialogue in 2020, India offered a US$1 billion Line of Credit (LoC) for five Central Asian countries, including Kyrgyzstan, with an additional US$200 million specifically for Kyrgyzstan, announced in 2019. These funds support projects in connectivity, energy, IT, healthcare, education, and agriculture.

India also provides technical support, including establishing an IT center, a potato processing plant, and telemedicine links in Kyrgyz hospitals, along with advanced equipment for cancer treatment. During Kyrgyzstan’s 2020 elections, India donated IT equipment valued at INR 2.7 million (US$ 32,472.55).

India-Moldova

India and Moldova maintain a modest but developing trade relationship. India mainly exports pharmaceuticals, textiles, and machinery to Moldova, while Moldova exports agricultural goods and wines to India. Although current trade volumes are low, both countries are keen on expanding economic and commercial ties. At present, India and Moldova do not have a Double Taxation Avoidance Agreement (DTAA).

Key exports and imports

India’s main exports to Moldova include:

• Pharmaceuticals
• Engineering goods
• Ceramic products
• Glassware
• Organic and inorganic chemicals

India’s primary imports from Moldova comprise:

• Animal and vegetable fats and oils
• Prepared edible fats and waxes
• Cereals
• Optical, photographic, and medical instruments and their accessories

Recent initiatives

India-Moldova Trade Forum, held in hybrid mode on November 17, 2022, was organized in collaboration with the Federation of Indian Export Organizations (FIEO), Moldova’s Organization for the Development of Entrepreneurship (ODE), and the Light Industry Employers’ Association of Moldova (APIUS). Over 60 Indian and Moldovan businesses from the textile, leather, and related industries participated. Additionally, a four-member Moldovan delegation attended the 11th International Silk Fair in July 2022.

In terms of infrastructure projects, in December 2021, India’s KEC International, part of the RPG Group, secured a contract to build a 400 kV Overhead Power Transmission Line on the Vulcanesti-Chisinau route. Power Grid Corporation of India Ltd. was chosen as the consulting partner and has since begun work on this project.

India-Russia

India and Russia share a historically strong and strategic partnership, characterized by extensive trade, defense, and energy cooperation. Russia is a major supplier of defense equipment and technology to India, while India exports pharmaceuticals, textiles, and agricultural products to Russia. The bilateral trade includes energy, nuclear cooperation, space exploration, and cultural exchanges. The two countries aim to reach a bilateral trade target of US$30 billion by 2025, supported by initiatives like the INSTC and Russia’s interest in the “Make in India” initiative. Their mutual interests in regional security and counter-terrorism further solidify this partnership.

India-Tajikistan

India exports pharmaceuticals, textiles, and tea to Tajikistan and is actively involved in infrastructure projects, including refurbishing military facilities. Tajikistan’s strategic location makes it an essential partner in India’s connectivity goals within Central Asia. Both countries are committed to enhancing collaboration in healthcare, education, agriculture, and defense, with India providing technical and economic assistance to support Tajikistan’s development objectives.

Bilateral agreements

The legal foundation of India-Tajikistan relations includes 70 agreements spanning inter-governmental and inter-departmental levels:

• 4 inter-state agreements
• 26 inter-governmental agreements
• 15 inter-departmental agreements
• 7 joint declarations, and
• 10 programs and protocols.

These agreements cover diverse areas, including politics, economy, culture, military, education, healthcare, investment, and space exploration.

Bilateral consultative mechanisms

The two countries maintain five key consultative platforms:

1. Foreign Office Consultations – Held four times, most recently in December 2018 in New Delhi.
2. Joint Working Group (JWG) on Counter-terrorism – Three meetings, last in June 2017 in Dushanbe.
3. Joint Commission on Trade, Economic, Scientific, and Technical Cooperation – Most recent meeting in Delhi in February 2020.
4. JWG on Defense Cooperation – Seventh meeting held in Dushanbe in July 2018.
5. JWG on Peaceful Use of Space Technology – First meeting held via video conference in June 2019.

Imports from Tajikistan to India include ores, slag, aluminum, organic chemicals, herbal oils, dried fruits, and cotton.

Indian investments in Tajikistan

Notable Indian investments and projects in Tajikistan include:

1. A hotel built by CHL Limited, inaugurated by Tajikstan’s President Rahmon in 2014.
2. KEC/RPG’s construction of a 116 km power transmission line, completed in 2010.
3. BHEL’s provision of a 7 MW generator to Pamir Energy in 2011.
4. Kalpataru’s US$22 million electric transmission project, completed in 2017 under ADB financing, along with a US$35 million project under the CASA-1000 initiative.

India-Turkmenistan

India and Turkmenistan share a strong partnership focused on energy cooperation, particularly through the -Afghanistan-Pakistan-India (TAPI) gas pipeline project, which aims to transport natural gas from Turkmenistan to South Asia. India’s primary exports to Turkmenistan include pharmaceuticals, tea, machinery, and engineering goods. In return, Turkmenistan’s vast natural gas reserves are key to this relationship. Both countries are exploring additional collaborations in renewable energy, healthcare, and education, with India’s regional connectivity initiatives aligning well with Turkmenistan’s emphasis on strengthening trade links within Central Asia.

Turkmenistan’s representatives have engaged with Indian counterparts in key forums and meetings:

• India-Central Asia Business Council: The 2nd meeting in October 2020 included participation by Turkmenistan’s Chamber of Commerce and Industry.
• India-Central Asia Summit (ICAS): Former President Gurbanguly Berdimuhamedov participated in the first summit held in January 2021.
• Cultural and policy dialogues: Turkmenistan participated in the India-Central Asia Culture Ministers’ meeting (April 2023), the Joint Working Group (JWG) on Afghanistan (March 2023), and the JWG on Chabahar (April 2023). A 20-member delegation from Turkmenistan also joined the 2nd Central Asia Youth Delegation program in March 2024.

Ashgabat agreement and INSTC

India and Turkmenistan are signatories to the Ashgabat Agreement for establishing an international transport and transit corridor linking Iran, Oman, Turkmenistan, and Uzbekistan, with India joining in 2018. Turkmenistan has expressed interest in joining the INSTC corridor and in utilizing the Chabahar Port in Iran, which was developed with Indian assistance, for goods transshipment.

Cooperation in science and technology

India and Turkmenistan signed an agreement on science and technology cooperation in May 2010. A subsequent program of cooperation was signed during the Indian Prime Minister Modi’s visit in 2015, targeting sectors such as space, energy, and healthcare.

Turkmen-India Industrial Training Centre (TIITC)

India established the Turkmen-India Industrial Training Centre at the Institute of Architecture & Construction in Ashgabat in 2002, executed by Hindustan Machine Tools Ltd. The center was later upgraded in a phased project, which included heavy machinery supply, equipment installation, and commissioning, completed in August 2017.

India-Ukraine

Ukraine is India’s second-largest trade partner in the CIS region, following Russia. Formal diplomatic ties were initiated in the 1960s, and a friendship treaty was signed in 1992 to strengthen trade and cooperation. India and Ukraine have signed over 17 agreements covering areas such as science and technology, space research, foreign office consultations, double taxation, and investment protection.

India-Uzbekistan

India and Uzbekistan enjoy strong economic and strategic ties, with Uzbekistan supporting India’s connectivity and security interests in Central Asia. India’s main exports to Uzbekistan include pharmaceuticals, machinery, agricultural products, and textiles, while Uzbekistan supplies India with chemicals, minerals, and agricultural goods. According to India’s Ministry of External Affairs, both nations are working to strengthen trade links, including through projects like the International North-South Transport Corridor.

Key meetings and dialogues

Inter-Governmental Commission (IGC): The 13th India-Uzbekistan IGC on Trade, Economic, Scientific, and Technical Cooperation was held in New Delhi on July 28, chaired by Uzbekistan’s Deputy Prime Minister Jamshid Khodjaev and India’s Minister of Commerce and Industry Piyush Goyal. The 12th session occurred virtually in December 2020.

Foreign Office Consultations (FOC): The 15th round of FOC took place on May 11, 2022, in New Delhi. It was co-chaired by India’s MEA Secretary (West) Sanjay Verma, and Uzbekistan’s Deputy Minister of Foreign Affairs Furkat Sidikov. Both sides conducted a comprehensive review of political, security, trade, connectivity, and cultural ties, agreeing to schedule the next FOC in Uzbekistan.

Joint Working Group on Counterterrorism (CT): The 8th CT Working Group meeting was held in New Delhi in July 2019, where areas of cooperation in training and capacity building for law enforcement and counter-terrorism were discussed.

(US$1 = INR 84.38)

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