Speaking to the members of Indo-CIS Chamber of Commerce here on Friday, Nematov said his country is looking forward to forging new joint ventures with Indian companies in textiles, pharmaceuticals, food processing, electronics and machine building sectors. There are 57 Indo-Uzbek joint ventures operating from Uzbekistan, of which 40 are in the manufacturing sector.

Nematov said Uzbekistan is one of the major producers of cotton, and urged Indian textile entrepreneurs to produce high-quality garments using their expertise. He invited Indian participation in processing rare metals and manufacturing jewellery. In 1997 Uzbekistan achieved a GDP growth of 5.2 per cent against a meagre 1.6 per cent in 1996. Its industrial and agricultural production increased to the tune of 6.5 per cent and 5.8 per cent respectively in 1997. However, the annualaverage inflation rate is as high as 25 per cent. Nematov urged Indian companies to set up industrial and residential complexes in the CIS republic and said Indians can set up hotels as Uzbekistan has a strong potential in tourism.