Afghanistan Reaches Out to India for Trade Revival
Afghanistan’s acting Foreign Minister, Amir Khan Muttaqi, has urged India to restore trade relations, emphasizing mutual economic benefits and regional stability. The appeal, made in Kabul, signals the Taliban-led government’s intent to reconnect with India despite geopolitical tensions.
Historic Trade Ties Between India & Afghanistan
Before the Taliban’s 2021 takeover, India was one of Afghanistan’s top trade partners, with annual bilateral trade exceeding $1.5 billion. Key exports included:
– From India: Pharmaceuticals, machinery, and consumer goods
– From Afghanistan: Dry fruits, spices, and gemstones
The Chabahar Port project, India’s strategic gateway to Afghanistan and Central Asia, was a major collaboration. However, trade stalled post-Taliban takeover due to security and human rights concerns, though informal trade (via Iran/UAE) persists.
Why Afghanistan Wants India Back
Muttaqi’s pitch highlights Afghanistan’s economic crisis:
– Sanctions & Banking Collapse: Frozen assets and global isolation have crippled the economy.
– Unstable Pakistan Routes: Political tensions make trade via Pakistan unreliable.
– Key Sectors Open for Investment: Mining, infrastructure, and agriculture.
“India is a crucial partner. We invite businesses to explore Afghan opportunities,” Muttaqi stated.
India’s Dilemma: Engage or Wait?
New Delhi remains cautious but pragmatic:
– No Official Recognition: India hasn’t legitimized the Taliban regime.
– Humanitarian Aid Continues: Wheat, medicines sent via third countries.
– Conditions for Trade: Experts say India may resume trade incrementally if the Taliban addresses terrorism and governance.
Chabahar Port: A Potential Lifeline
India’s Chabahar Port in Iran could be pivotal:
– Bypasses Pakistan, giving Afghanistan direct sea access.
– Talks underway for long-term India-Iran agreements.
– Taliban’s interest in Chabahar may enable India-Afghan-Iran cooperation.
Key Challenges to Trade Revival
- Security Risks: Afghanistan’s militant links remain a red flag for India.
- Taliban’s Global Isolation: Lack of recognition complicates formal deals.
- U.S./UN Sanctions: Deter major investments in Taliban-ruled Afghanistan.
What’s Next?
Small steps could rebuild trust:
– Reopening air trade corridors.
– Easing visas for Afghan traders.
– Expanding humanitarian aid.
For Afghanistan, India’s market is vital; for India, a stable Afghanistan checks Pakistani influence and secures Central Asian trade routes.
Watch for India’s next move—will it re-engage or wait?
