Key words: cooperation, Tajikistan, India, economy, trade, scientific and technical
cooperation.
Economic cooperation between the Republic of Tajikistan and the Republic of
India was established on the basis of interstate agreements after the establishment of
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diplomatic relations between the two countries (August 28, 1992). In the period from
1992 to 2007, a solid foundation of cooperation was laid and its further expansion was
planned. The role of the Tajik-Indian Commission on Trade, Economic, Scientific and
Technical Cooperation is important in strengthening economic cooperation. On
November 21, 2008 in Delhi the fifth joint meeting of the commission was held under
the chairmanship of the Minister of Economic Development and Trade of the Republic
of Tajikistan G. Bobozoda and the First Deputy Minister of Trade and Industry of the
Republic of India G.K. Pillai [3, 118]. The commission reported on the implementation
of the protocol of the fourth meeting of the trade-economic and scientific-technical
commission, signed on October 11, 2007 in Dushanbe.
The parties agreed that the relevant ministries and departments will continue to
work on implementing the decisions of the protocol of the fourth meeting of the
commission. It was noted that the volume of bilateral trade in 2007-2008 compared
with 2006-2007 increased by 42.5%. Given the current state of trade and economic
relations between the two countries, the commission stressed the need to strengthen
and improve trade and economic relations between the parties and noted that measures
will be taken to increase the volume and expand mutually beneficial trade between the
two countries. India asked Tajikistan to provide additional information on the country's
investment potential and regulatory framework for trade and economic cooperation
[6, 32-35].
One of the forms of expanding trade and economic relations was the holding of a
business forum of the two countries. The Forum of Entrepreneurs of Tajikistan and
India was held on October 12, 2007 in Dushanbe. Given the export potential of India,
the commission recommended that Tajikistan study the possibility of importing wheat,
flour, sugar, butter, chocolate and tea from India. The Commission confirmed that
cooperation in the field of investment is a key factor in the development of trade and
economic relations between the two countries and the need to establish cooperation in
industry, the use of local raw materials and production facilities. The Tajik side noted
not only the potential for the development of mining ties in the chemical and mining
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industries, the production of building materials, but also large reserves of primary
aluminum, cotton fiber, leather, precious stones and metals, joint production of finished
products.
In this regard, the commission recommended the relevant ministries and
departments of industry of Tajikistan and India to take measures to create joint ventures
in their countries in the following areas: creation of joint ventures for processing cotton,
wool and leather, mining and processing of minerals, chemical production, creation of
enterprises for the extraction and processing of marble, the creation of joint ventures
for the production of surface materials, the creation of joint ventures for the assembly
of buses, the processing of fruits and vegetables, the organization of practical courses
for specialists in the electronic and light industry.
The parties noted the need to strengthen the regulatory framework, contributing
to the development of trade and economic relations between Tajikistan and India, as
well as to create favorable conditions for entrepreneurs of the two countries to conduct
business and investment based on free trade competition. The Commission noted with
satisfaction the Agreement between Tajikistan and India on the avoidance of double
taxation and the prevention of tax evasion with respect to taxes on profits and capital,
signed on November 20, 2008 at a joint meeting of the Commission.
On September 7, 2009, President of the Republic of India P. Patil and President
of the Republic of Tajikistan E. Rahmon took part and spoke at the Forum of
Entrepreneurs and Investors of the two countries [13].
The leaders of the two countries noted the existence of a broad political, legal and
investment base for the development of economic and trade cooperation. They called
on businessmen and investors of the two countries to maximize the development of
mutually beneficial cooperation.
Within the framework of economic cooperation, the Ayni military airport,
construction of which began in 2002, was renovated for $ 70 million with technical
assistance and funding from the Republic of India and opened on September 3, 2010
[9].
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On May 16, 2011 in Dushanbe, the sixth meeting of the Tajik-Indian Commission
on Trade, Economic, Scientific and Technical Cooperation was held under the
chairmanship of the Minister of Economic Development and Trade of the Republic of
Tajikistan F. Khamraliev and Special Secretary of the Department of Trade of the
Ministry of Trade and Industry of the Republic of India P.K. Chowdhury passed in an
atmosphere of mutual understanding and traditional friendship between the two
countries [1].
Both sides recognized that all agreements, memorandums of understanding and
protocols provide a bilateral legal basis for strengthening cooperation between the two
countries, and despite the great potential for bilateral cooperation, the level of bilateral
trade and economic cooperation should be high. In order to fully unleash the potential
of bilateral cooperation, it is necessary to implement special projects and programs. It
was believed that such an approach would speed up the process of realizing the full
potential of cooperation between the two countries. It was decided that the relevant
ministries will continue to implement the agreements reached in the Protocol of the
sixth meeting of the Commission.
The Republic of Tajikistan has large reserves of precious and semi-precious
stones, and the Government of India has been called upon to find opportunities. The
representatives of the Republic of India proposed to exchange experience with India
through the State Trade Corporation (STC) for the installation of these workshops in
Tajikistan. At the same time, cooperation in the field of mining, textile industry,
science and technology, information technology, human resource development,
tourism, pharmaceuticals, transport and civil aviation was discussed.
On September 3, 2012 at the meeting of the President of the Republic of Tajikistan
E. Rahmon and the Prime Minister of the Republic of India M. Singh expressed their
interest in expanding trade and economic cooperation, investments in transport,
agriculture, industry, especially in the field of exploration and processing of minerals,
chemistry, pharmaceuticals, building materials [14]. On the same day, to expand trade,
economic and investment cooperation, President of the Republic of Tajikistan
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E. Rahmon met with delegations from the Federation of the Chamber of Commerce and
Industry, the Confederation of Industry and the Center of the Indian Association of Trade
and Industry. From 2007 to 2013, India invested $ 19.5 million in the Tajik economy.
There are currently 43 Tajik-Indian joint ventures in Tajikistan funded by India [4].
The seventh meeting of the Tajik-Indian Commission on Economic and Trade
Cooperation was held on February 19-20, 2013 in New Delhi. It was noted that Indian
investments in Tajikistan during this period amounted to US $ 5.8 million. Given the
good opportunities for profitable investment in information technology,
pharmaceuticals and biotechnology, poultry, fruit and vegetable processing, oil and
gas, mining, coal, science and technology, textiles, wool and leather processing, it is
important to attract the right people.
The development of close institutional ties with the main investment agency
between the two countries is an important source of information on existing investment
areas, investment rules and incentives, as well as promising investment partners,
exchange of trade and industry representatives, the level of awareness of the parties
was deemed necessary. The Tajik side proposed to hold an exhibition of Indian goods
and a business forum in Tajikistan in 2013.
On April 15, 2013, at the meeting of the President of the Republic of Tajikistan
E. Rahmon and Vice-President of the Republic of India M.Kh. Ansari, among other
issues, discussed trade, economic and investment cooperation, and also noted the need
to activate the intergovernmental commission on bilateral cooperation and the effective
implementation of the signed documents [11].
On May 7, 2014, the President of the Republic of Tajikistan E. Rahmon met with
the Secretary of State for Foreign Affairs of the Ministry of Foreign Affairs of the
Republic of India S. Singh to discuss economic, trade and investment cooperation
between the two countries. Sujatha Singh called his meeting with the President of the
country useful and a basis for further strengthening economic cooperation.
On July 13, 2015 in Dushanbe, a meeting was held between the Prime Minister of
the Republic of India N. Modi and the President of the Republic of Tajikistan E.
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Rahmon [12]. At the meeting, it was considered timely to activate the Joint
Intergovernmental Commission on Trade, Economic, Scientific and Technical
Cooperation for the implementation of the signed documents between the two
countries, and expressed confidence that economic, trade and investment relations will
expand in the future.
The creation of joint ventures and the contribution of Indian companies to the
implementation of investment projects in Tajikistan were identified as ways to expand
economic ties. Negotiations were held on the establishment of joint ventures in the
processing, light and food industries, as well as in the field of information and
communication technologies [17]. Indeed, the building potential will give a serious
impetus to the development and expansion of practical cooperation between the
countries. The President of Tajikistan stated that he is ready to help Indian investors,
as he hopes to bring relations with India in this direction in a new form and quality.
The Prime Minister of India announced his intention to develop two directions
for the development of economic and trade cooperation. The commission was entrusted
with completing work in this direction in the future. The emphasis was on
strengthening regional ties, such as participating in transport and energy projects aimed
at transferring electricity from Central Asia to South Asia and exchanging goods
between these countries.
On July 13, 2015, the Tajik-Indian Agricultural Forum was held in Dushanbe [14].
President of the Republic of Tajikistan E. Rahmon in his speech stressed that trade and
economic relations between Tajikistan and India should correspond to the potential for
cooperation. It was noted that the chairmen of the Joint Commission of Tajikistan and
India on trade, economic, scientific and technical cooperation were instructed to
develop a strategy for the development of trade and investment relations and identify
specific steps to develop business cooperation.
In the conversation between the President of the country E. Rahmon and the Prime
Minister of India, the importance of agriculture in the economies of countries and the
strengthening of cooperation in the field of agriculture were considered necessary.
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India has made great strides in agriculture and food security as a result of the Green
Revolution. Studying India's experience in this direction is of immense importance.
On December 17, 2016, at the meeting of the President of the Republic of
Tajikistan E. Rahmon and the Prime Minister of the Republic of India, it was
considered necessary to strengthen the activities of the Joint Intergovernmental
Commission on Trade, Economic, Scientific and Technical Cooperation between
Tajikistan and India to strengthen cooperation between the two countries. E. Rahmon
emphasized the importance of India's participation in the implementation of the project
for the construction and reconstruction of hydropower facilities in Tajikistan.
On the initiative of the Chamber of Commerce and Industry of the Republic of
Tajikistan and the Confederation of Indian Industrialists, on March 28, 2016, a business
forum of trade and economic cooperation between Tajikistan and India was held in
Dushanbe. Within the framework of the business forum, the Chairman of the Chamber
of Commerce and Industry of the Republic of Tajikistan Sh. Said and the head of the
Confederation of Indian Industrialists Kiran Vassant Kalbag signed a Memorandum of
Understanding. The Indian delegation held exhibitions in the regions of the Republic
of Tajikistan and held a business forum of Tajik-Indian trade and economic
cooperation, highlighting the potential of bilateral cooperation in all areas, including
information technology, pharmaceuticals and textiles [4].
There is cooperation between Tajikistan and India in the production and processing
of consumer goods. In the Republic of Tajikistan, Indian workshops and equipment are
used in the production of some of the necessary materials. For example, the publishing
house and printing house "Ganj" located in Dushanbe, specializing in the production of
all printed materials in the country, is equipped with equipment from foreign companies,
including the Indian Linomatic. This equipment allows high quality printing of all types
of printing and plastic products. At the same time, Komron Agroholding in Khujand is
using Indian technology Tekhnokhim to refine cottonseed oil.
On May 4, 2018, in Dushanbe, at the meeting of the President of the Republic of
Tajikistan Emomali Rahmon and the State Minister of Foreign Affairs of India M.J.
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Akbar noted that the implementation of projects in the field of agriculture, industry,
technology and transport between the two countries is one of the priority areas of
cooperation [7]. The creation of joint ventures for the processing of various fruits,
vegetables and minerals, pharmaceuticals, the production of various juices, sugar, salt
was considered useful for the economic development of the two countries.
On June 9, 2018 in the city of Qingdao (China), the President of the Republic of
Tajikistan E. Rahmon and the Prime Minister of the Republic of India N. Modi noted
the importance of expanding political, trade and economic cooperation and the
Intergovernmental Commission on Trade and Economic Cooperation in the process of
its development [8]. The readiness of Tajikistan to attract Indian capital in the
implementation of industrial, trade and energy projects, the creation of joint ventures
was noted.
On September 23, 2019, within the framework of the 74th session of the UN
General Assembly, the Minister of Foreign Affairs of the Republic of Tajikistan S.
Mukhriddin and the Minister of Foreign Affairs of the Republic of India S. Janshaikar
met. The parties discussed bilateral economic cooperation, air transport and trade [9].
At the same time, the conditions for attracting financing and technologies of Indian
companies to the economy of Tajikistan were discussed.
On February 24-25, 2020, the 11th meeting of the Joint Intergovernmental
Commission of the Republic of Tajikistan and the Republic of India on Economic
Cooperation was held in New Delhi. The meeting discussed the state and prospects of
cooperation between the two countries in the field of economy, trade, finance and other
issues. The 11th Protocol of the Commission on Economic and Scientific Cooperation
was signed [5]. This protocol came into force.
Thus, Tajikistan is interested in studying and applying India's rich experience in
industry, construction, banking, agriculture, new technologies and infrastructure.
Economic cooperation will enable the Republic of Tajikistan to learn from India's
significant achievements and make progress in the process of economic reform and
achievement of national economic development goals.
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India is one of the ten most economically and industrialized countries in the world.
The annual GDP growth rates in recent years have ranged from 5.1 to 12.5%. It is
important for Tajikistan to learn from India's experience [6, 35-37].
It is clear that the Republic of India has made great advances in agriculture as a
result of the Green Revolution, and many countries are benefiting from India's
agricultural expertise. Therefore, effective cooperation with India in the field of
agriculture requires the involvement of Indian companies in the processing of
agricultural products, the exchange of experience and advanced research methods for
the introduction of new technologies in this important sector of the national economy,
which is one of the four strategic goals of the country.
In this regard, cooperation in the creation of joint ventures in the field of
agricultural products processing, wool and leather processing, cotton growing and
horticulture and vegetable growing, animal husbandry, beekeeping, as well as the
introduction of innovative technologies from India is of great importance.
In India, high-yielding varieties of wheat (45-50 kg / ha), corn and other crops are
grown. Using the experience of India and working with it, we can achieve significant
success in the cultivation and development of crops. Agriculture is one of the most
important priority sectors of the country's development. In this regard, investment and
expansion of fruitful cooperation and exchange of experience between farmers in
Tajikistan and India are needed. In India, livestock productivity has increased as a
result of the "white" revolutions. In animal husbandry, using the experience of India, it
is necessary to import from India highly productive livestock adapted to the climatic
conditions of Tajikistan.
With the support of India, it became necessary to establish joint ventures in the
field of processing building stone, vegetables and fruits, and medicinal juices. For
example, by growing and producing sugar beets, you can create a sugar factory in
Tajikistan.
Economic cooperation between Tajikistan and India is based on agreements of
economic importance between the two countries. In the Republic of Tajikistan, more
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than 600 mineral deposits have been discovered and prepared for development. Of this
number, today only 40 deposits are in operation, where more than 40 types of minerals
are extracted. In this regard, it is necessary to establish cooperation with India in the
processing industry, mining and production of building materials. Cooperation with
Indian entrepreneurs in the mining and quarrying of minerals will be in the interests of
both countries. With the involvement of Indian specialists and Indian capital, we can
build a number of industrial enterprises, taking into account the laws of the economy,
such as the location of raw materials, labor, transport, roads and railways.
India has rich and many years of experience in the field of light industry, in
particular, the production of fabrics and cotton products, leather goods. In this respect,
the creation of joint ventures with Tajikistan will be very effective. The use of existing
natural opportunities, the creation of joint ventures in animal husbandry, beekeeping,
production and export of fruits and vegetables, processing of agricultural products,
export of high-quality drinking water will be economically beneficial for our Indian
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