Turan Research Center

Central Asia has emerged as an increasingly strategic priority in India’s foreign policy. Driven by regional realignments and shifting trade agreements across Eurasia, New Delhi is intensifying its engagement with the region. At the same time, the potential of bilateral cooperation remains constrained by persistent geographical hurdles, limited infrastructure, and overlapping spheres of influence, particularly those of China and Russia.

India no longer perceives Central Asia as a peripheral  concern but views it  as a pivotal space to advance its Act East and Connect Central Asia policies. The region presents a unique opportunity for India to project its economic footprint and counterbalance China’s Belt and Road Initiative. From the International North-South Transport Corridor (INSTC) to investments in the Iranian port of Chabahar, India is working to establish alternative linkages that enhance its strategic autonomy and diversify regional access.

Central Asia’s evolving role as a transit hub – linking Chinese markets to Europe and Russian networks to South Asia – further amplifies its relevance. In 2016, India joined the Ashgabat Agreement for Transport Links Development, which simplifies the transportation of goods between Central Asia and the Persian Gulf. In the same period, India also signed the Trilateral Transit Agreement with Iran and Afghanistan that sought to build the Chabahar port in Iran. In 2024, India and Iran finalized a 10-year agreement to further develop the port. From the Indian perspective, the Chabahar project offers an alternative to bypass Pakistan and reach Central Asia via Afghanistan, which allows the latter to integrate into regional infrastructure.

The Chabahar project is not the only one that India has promoted linking connectivity with Central Asia.

New Delhi renewed its interest in the TAPI (Turkmenistan-Afghanistan-Pakistan-India) gas pipeline project, a critical initiative aimed at deepening regional energy cooperation. The pipeline’s construction within Turkmenistan was completed in 2024, and has now been extended southward through Afghanistan’s Herat province. Once operational, the TAPI pipeline will transport natural gas from Turkmenistan’s Galkynysh field through Afghanistan and Pakistan, ultimately reaching India.

The TAPI project promises not only enhanced access to Central Asia’s rich hydrocarbon reserves but also a significant boost to India’s geopolitical footprint in the region. The emphasis on connectivity was evident during the June meeting in New Delhi between the foreign ministers of India and the five Central Asian countries. Discussions focused on civilizational and cultural ties, as well as strengthening trade, investment and logistics partnerships – including collaboration under the International North South Transport Corridor, a 7,200-kilomter trade route that connects India, Iran, Russia, Europe and Central Asia through a combination of sea, rail and road networks.

The gathering marked a diplomatic milestone, occurring after a three-year hiatus, and underscored New Delhi’s awareness of intensifying its strategic competition in Central Asia. It also built on Prime Minister Narendra Modi’s landmark 2015 tour of all Central Asian countries, reaffirming India’s long-term commitment to regional engagement.

Beyond traditional connectivity and energy cooperations, several emerging areas offer promising bilateral ties between India and Central Asia. Green energy collaboration is gaining traction, as both regions seek sustainable solutions amid climate challenges. Joint initiatives in glacier preservation -- vital to the region’s water security -- also underscore the growing importance of environmental projects.

Medical tourism continues to grow steadily, with India positioning itself as a regional healthcare hub. India also is advancing financial and digital integration, focusing on the use of national currencies, digital payment systems and fintech innovation. Platforms such as United Payments Interface, Aadhaar and DigiLocker present models for secure transactions, digital identity management and data portability – areas where Central Asian countries are increasingly receptive to Indian expertise. Cooperation in financial services, healthcare and pharmaceuticals – sectors where Central Asia remains a key export destination for India – continues to be a strategic priority for New Delhi. These areas not only bolster commercial ties but also support India’s broader ambition to integrate itself more deeply into the region’s socioeconomic development.

At the same time, Central Asia is increasingly viewed by India as a crucial source of strategic resources. With India currently dependent on imports for nearly 80% of its supply of critical minerals, tapping into the region’s growing reserves of rare earth elements (REEs) has become essential. Both Uzbekistan and Kazakhstan have recently showcased their potential to exports REEs, prompting India to engage more proactively as global powers like the United States, European Union and China intensify competition over access to these vital Central Asian resources.

By strengthening its foothold in this emerging market, India seeks not only to diversify supply chains, but also to reduce its strategic vulnerability to China, which currently dominates nearly 60% of the global REEs market. Recognizing this opportunity, India proposed to create a "Regional Alliance on Critical Minerals" with Central Asian countries in 2024 order  the formation of a regional alliance on critical minerals in 2024, aimed at fostering joint geological exploration and establishing shared processing facilities in Uzbekistan and Kazakhstan.

To be sure, India’s growing engagement with Central Asia is not driven solely by economic interests – but by the region’s rising geopolitical significance in global affairs. All major powers, including the U.S., EU, China and Russia, have developed distinct ties with the five Central Asian nations.

India, recognizing such a competitive landscape, is following suit, pursuing a dual-track approach: advancing multilateral cooperation through the Shanghai Cooperation Organization (SCO) and India-Central Asia Dialogue, while also deepening bilateral ties with individual countries. Among these nations, Kazakhstan stands out as a key trade partner. Its extensive hydrocarbon reserves have long drawn India’s interest, prompting collaborations such as ONGC Videsh LTD’s acquisition of stakes in the Kazakh oil fields of Alibekmola and Kurmangazy. Kazakhstan also accounts for the bulk of India’s imports from Central Asia and has served as a gateway for commercial and energy cooperation. Notably, it was the first country in the region to elevate its ties with India by signing the Declaration of Strategic Partnership in 2009, setting a precedent for deepened bilateral ties.

The engagement by India is hardly one-sided. Central Asian states likewise are interested in building more expansive ties with the massive Indian economy. It fits into the Central Asian countries’ pursuit to diversify their foreign relations. In a world that has grown increasingly multipolar, closer ties with India emerges as an effective geopolitical move by Central Asian states to limit their dependence on either Russia or China. Central Asian states, while being landlocked, specifically seek maritime sea routes.

Yet, there are constraints that limit India’s engagements with Central Asia. Foremost among these is geography: India lacks a direct land route to the region. This logistical barrier is compounded by strained relations with Pakistan and ongoing instability in Afghanistan, making overland connectivity both politically and practically unfeasible. The impact is evident in the modest trade volume between India and the Central Asia nations, which remains below $2 billion annually.

India must also contend with stiff competition from larger powers that benefit from geographic proximity and deeper cultural and economic ties with the region. Russia, for instance, continues to wield significant influence through long-standing security and economic partnerships. Meanwhile, China has expanded its footprint via the Belt and Road Initiative, positioning Central Asia as a strategic alternative to the vulnerable maritime route through the Malacca Strait.

Over the long term, India’s foreign policy toward Central Asia has undergone a significant shift. Until the 2010s, the region occupied a peripheral place in New Delhi’s priorities. However, in recent years, India has advanced its “Look North” strategy, aimed at cultivating stronger ties with northern powers to diversify its foreign partnerships and capitalize on emerging economic opportunities in the Eurasian heartland.

This major shift also reflects the geographic and historical linkages between the two regions. Centuries ago, the terrain stretching from Central Asia to modern-day northern India, was controlled by the Kushan and Mughal empires. One entity tied the region together politically and helped to develop connectivity propelling the Indian subcontinent to emerge in ancient and medieval times as one of the paramount global economic powerhouses on a par with China. It is with the Kushan and Mughal empires that the “India Road” emerges – a system of routes leading in and out of the region. A striking contrast with the modern period.

Central Asia’s shifting dynamics carry direct implications for India’s strategic ambitions. No longer a peripheral concern, the region now anchors India’s efforts to expand its influence across Eurasia. Through investments in infrastructure, trade, and critical resources, New Delhi aims to position itself as a stabilizing force and alternative to regional powers like China and Russia. Success will depend on India’s ability to navigate rivalries and offer enduring partnerships—reviving historic ties while shaping a new Eurasian order.

Emil Avdaliani is a research fellow at the Turan Research Center and a professor of international relations at the European University in Tbilisi, Georgia. His research focuses on the history of silk roads and the interests of great powers in the Middle East and the Caucasus.