Diplomatic relations between Uzbekistan and India were established on 18 March 1992. Among the main documents signed between the two countries were agreements on trade and economic cooperation, on stimulation and mutual protection of investments, on avoidance of double taxation, etc.

A landmark event in the history of bilateral cooperation between the two countries was the state visit of the President of Uzbekistan to India in April 2005. During the visit, the parties signed 13 intergovernmental and interdepartmental documents, including agreements on cooperation in development of small business and private enterprise, education and culture, memorandum on mutual understanding with the Trade Corporation of India, a protocol on mutual understanding between UzbekTourism National Company and Tourism Development Corporation of India, etc.

In his greeting speech, Uzbek Co-chairman of the Commission, Deputy Prime Minister of Uzbekistan Abdulla Aripov emphasized that Uzbek-Indian cooperation was of strategic importance to bother parties and was being built on the foundation of mutual respect. He also said the two countries attributed high importance to the intensification of collaborative efforts in all spheres of cooperation.

Intergovernmental Commission for Trade, Economic, Scientific and Technological Cooperation was founded as a body intended to serve as an important instrument in the development of bilateral relations between Uzbekistan and India. The previous meeting was held in March 2006 in Delhi. The parties have conducted several business forums, presentations, exhibitions, fairs and conferences on the territories of both countries, and participated together in other international events. In April last year Prime Minister of India Manmohan Singh paid a visit to Uzbekistan. In October of the same year Indian delegation headed by the Minister of Textile Industry Mr. I Ilangovan visited the country.

In accordance with the Agreement on Trade and Economic Cooperation between Uzbekistan and India, the two countries are committed to establishing a regime most favourable for bilateral trade. In 2006 the trade turnover between the countries exceeded US$59 million.

Currently 11 Indian companies and organizations are accreted by the Ministry of Foreign Economic Relations, Investments and Trade of Uzbekistan.

According to the State Statistics Committee of Uzbekistan, 33 enterprises with shares of Indian capital operate on the territory of Uzbekistan. Of them, 26 are joint ventures, and 7 are companies full 100% foreign investment.

The key directions in the activity of the Indian enterprises in Uzbekistan include the production of consumer goods, tanning and agricultural processing industries, drugs, textiles production, construction, tourism, wholesale and retail trade, etc.