Afghanistan is seeking increased investment and trade with India as a Taliban delegation, led โby โขCommerce Ministerโ Haji Nooruddinโ Azizi, concludedโ aโฃ visit toโ New Delhi this week, officials said on Thursday. The Afghan side is notably interested in โฃsecuring preferential access for its goods to theโ Indian market and attracting Indian companies to invest in sectors likeโ agriculture, mining, and infrastructure.
The visit marksโ a significant step in cautiously rebuilding economic ties between the two countries following the โTalibanS takeover in August 2021. While India has not formallyโ recognized the โTaliban government, it has maintained diplomatic contact and provided humanitarianโค aid. This renewed โfocus on economic engagement reflects India’s strategicโ interests in afghanistan’s stability and its desire to counter pakistan’s influence in the region, while Afghanistan desperately needs economic support to avert a deepening humanitarian crisis and rebuild its economy.
Azizi met with Indian officials, including representatives โขfrom the Ministry of External โคAffairs and the Federation of Indian Chambers of โCommerce โข& Industry โ(FICCI), to discuss potential investment โopportunities and trade โคfacilitation measures. According to a statement released by theโ Afghan embassy in delhi, โkeyโ discussionโฃ points included easing visa restrictions for Afghan traders, establishing a direct payment mechanism to bypass international banking โขchallenges, and exploring opportunities for joint ventures.
“We discussed a range of issues related to enhancing trade and investment between Afghanistan and India,” an Afghan official said, requesting anonymity. “We are hopeful thatโ India will consider our requests for preferential treatment and increased investment.”
India was previouslyโ a major investor in Afghanistan,โ with commitmentsโ exceeding $3โ billion โคbefore โthe Taliban’s ascent. Trade betweenโ the two nations stood at around $1.3 billion in the fiscal โyear 2020-21, but has significantly decreased since. Key Afghan exports to India include dried fruits, โคfreshโข fruits, and medicinal plants, while India primarily exports essential commodities, pharmaceuticals, and machinery to Afghanistan.
Despite the potential benefits, challenges remain.Concerns over human rights, particularly the treatmentโค of โwomen and minorities under Taliban rule, continue toโฃ weigh on โIndia’s engagement. The โขinternationalโค community’s reluctance to recognize the Talibanโ government also complicates financial transactions and investment flows. However, India appears to be prioritizing pragmatic engagement to safeguard โขitsโ interests and provide โmuch-needed economic โคassistanceโ to Afghanistan.