Andijon-Pharm free economic zone to appear in Uzbekistan
By Abdul Kerimkhanov
In the Andijon region of Uzbekistan, a new free economic zone (FEZ) "Andijon-Pharm" will be created, according to the presidential decree.
Pharmaceutical companies from India will be strategic partners in its creation.
Among its main tasks are attracting investments and advanced technologies from Indian leading companies to create modern production facilities for the production of pharmaceutical products and medicines with high added value, including in the form of in-bulk.
The term of FEZ "Andijon-Pharm" functioning will be 30 years with the possibility of its subsequent extension. During this period, a special tax and customs regime will be in effect on the FEZ territory.
Depending on the amount of their investments, the participants of the zone will be exempt from land tax, profit tax, tax on property of legal entities, tax on the improvement and development of social infrastructure, single tax for micro-firms and small enterprises, as well as mandatory deductions for various periods. state funds.
If an investor invests from $300,000 to $3 million, he will receive benefits for three years, from $3 to $5 million for five years, from $5 to $10 million for seven years, from $10 million for ten years.
In addition, they will be exempted from paying customs duties on imported raw materials, materials and components in the part of products aimed at export for the entire period of the FEZ activity.
For the first time in the country history, the functions of the FEZ Directorate can be transferred to foreign companies, primarily Indian, with experience in the development and management of economic zones.
As many as seven free economic zones were created in Uzbekistan at once in May 2017, which specialize in the cultivation of medicinal plant materials in special natural conditions, as well as its processing. These are the zones "Nukus-Pharm", "Zomin-Pharm", "Kosonsoy-Pharm", "Sirdaryo-Pharm", "Boysun-Pharm", "Bustonlik-Pharm" and "Parkent-Pharm".
Diplomatic relations between Uzbekistan and India were established on March 18, 1992.
Total trade turnover between two countries was $323.6 million, from which $291 million was imports from India and $32.6 million were exports to India.
Uzbekistan exports to India beans, balsams, raw silk, earth metals, fertilizers and other goods. The main products imported from India are medicines, ferrous metals, various technological equipment, spare parts for cars.
According to Uzbek Ministry of Foreign Economic Relations, Investment & Trade, 113 companies created with participation of Indian capital are working in Uzbekistan, out of which 19 companies are with 100 percent investment.
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Abdul Kerimkhanov is AzerNews’ staff journalist, follow him on Twitter: @AbdulKerim94
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