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Trade and economic cooperation between India and Tajikistan started in 1999s after the collapse of Soviet Union and transformation of Tajikistan from the Soviet republic to sovereign state. After the recognition of independence of Tajikistan by India in 1991, 38 agreements and other documents regulating mutual relationship, were signed between the two countries.
India and Indians are viewed with high respect in T ajikistan as India is believed to be the closest friend of Tajikistan. In the difficult times of post-Soviet period, India helped Tajikistan in overcoming serious problems in political, economic and social spheres. However, the relationship between the two countries has developed more successfully in political sphere than in economic one, the reason being both objective and subjective. Political differences between India and Pakistan and long drawn conflict in Afghanistan hamper the usage of the direct and shortest land corridor. The Mumbai-Bandar Abbas-Turkmenabad- Termez- Dushanbe route is too expensive and unreliable. Transportation of cargo from East Europe and Middle East to Tajikistan is much more cheaper than from India to Tajikistan. Besides, there are several administrative and technical barriers attached to this route. Trade between India and Tajikistan which started mainly between private sectors, was beset with the problem of the security of foreign traders and investors.
Fortunately, political situation improved in T ajikistan after the signing of Agreement for peace and understanding, which created favorable conditions for expansion of trade and economic cooperation with other countries.As regards the trade relations between India and Tajikistan, there are many unused possibilities particularly with regard to cooperation between private sector of both countries in construction of houses, building infrastructure including power stations, transport corridors, tunnels, full gallops and mining for extraction of ferrous and non ferrous metals, development of air traffic and pipelines, transportation of ores etc. However, the negative trends need to be overcome as there are considerable fluctuations in the volume of services from year to year, which means lack of sustainability.
India can help Tajikistan reduce its economic dependence upon China. There is need for the permanent presence of Confederation of Indian Industry in Tajikistan. Large scale services of Indian corporate sector for rehabilitation of Tajik industry will help this country to increase the competitive capacity of its manufacturing sector and...