INFRASTRUCTURE DEVELOPMENT IN UZBEKISTAN: A CATALYST FOR INDIAN INVESTMENT

Uzbekistan's ambitions to position itself as a strategic trade and investment hub linking Europe, South Asia, and East Asia depend critically on the modernisation and expansion of its physical infrastructure. This paper investigates the role of infrastructure development in catalysing Indian Foreign Direct Investment (FDI) in Uzbekistan. Drawing upon a mixed-methods approach that combines regression analysis with sector-specific case studies, we analyse the relationship between infrastructure performance—across transport, logistics, and energy—and Indian FDI inflows from 2010 to 2024. We find that infrastructure quality is a statistically significant predictor of Indian investment, particularly in sectors such as textiles, pharmaceuticals, and energy. Empirical findings reveal that a 1% improvement in electricity generation capacity is associated with a 0.34% increase in Indian FDI inflows, while enhancements in rail freight capacity and road density yield positive elasticity effects. However, persistent deficiencies in multimodal logistics, power reliability, and regulatory clarity continue to undermine Uzbekistan’s attractiveness to Indian firms. This paper proposes a three-phase infrastructure roadmap (2025–2035) prioritising corridor connectivity, SEZ-linked logistics parks, and renewable energy integration. The analysis contributes to the literature on South–South FDI, especially within landlocked developing economies, and offers actionable policy guidance for both Uzbek and Indian stakeholders. By strategically investing in infrastructure and aligning reforms with investor expectations, Uzbekistan can become a preferred destination for diversified Indian capital in Central Asia.