Published
09/12/2025, 09:03The Eurasian Development Bank and the Export-Import Bank of India held their first joint webinar on the potential of trade finance to expand economic cooperation between India and Central Asia.
The event, entitled ‘India and Central Asia: The Role of Trade Finance in Strengthening Trade Ties,’ provided a platform for discussing the prospects for bilateral cooperation in trade, investment and infrastructure development.
EDB Chairman Nikolay Podguzov noted that the bank provides loans worth about $2.5 billion annually, with a particular focus on Central Asia, where its portfolio amounts to almost $9 billion. According to him, more than 10% of EDB's operations are trade finance — letters of credit and bank guarantees. Podguzov stressed that India is a ‘promising direction’ for Central Asia, especially in the fields of electrical equipment, mechanical engineering, transport and pharmaceuticals, while the region is actively increasing its exports of mineral fuels, fertilisers and precious metals.
Harsha Bangari, Managing Director of Eximbank India, recalled that almost 80% of international trade is facilitated by trade finance instruments. According to her, the pandemic, geopolitical challenges and protectionism have exacerbated the shortage of affordable finance. Bangari emphasised that Eximbank is taking steps to reduce this gap and is ready to more actively support Indian companies in Central Asia.
During the webinar, a joint analytical report entitled ‘Assessment of Trade and Investment Relations between India and Central Asia: Reaping Economic Benefits’ was presented. It highlights that over the past 15 years, the economies of both sides have doubled. Thus, the combined GDP of Central Asia reached $522 billion in 2024, while India, with a nominal GDP of $3.9 trillion, remains the world's fastest-growing major economy.
Limited transport accessibility and the lack of developed routes are cited as barriers to trade interaction. At the same time, experts note significant potential for cooperation — from energy and mining to pharmaceuticals, logistics, ICT and renewable energy.
The report proposes strategic directions for strengthening cooperation. In particular, expanding mutual trade, developing digital financial infrastructure, creating joint ventures, improving access to trade finance instruments, and developing transport and logistics corridors, including the North-South International Transport Corridor.
‘The economy of Central Asia is growing faster than emerging markets and the global economy as a whole. Cooperation with India opens up mutually beneficial opportunities and requires the combined efforts of governments, businesses and international organisations,’ Nikolay Podguzov emphasised.
