Strengthening Ties: Afghanistan Seeks Enhanced Trade Relations with India

Kabul's Call for Trade Expansion

Kabul: The leading trade organization in Afghanistan has urged for an enhancement of trade and investment relations with India, emphasizing the necessity to simplify business processes, eliminate bureaucratic hurdles, and streamline the issuance of business visas.

These discussions took place in Kabul during a meeting between Sayed Karim Hashemi, Chairman of the Afghanistan Chamber of Commerce and Investment (ACCI), and Yatin Patel, the Indian Ambassador to Afghanistan.

The dialogue was part of a broader strategic and diplomatic engagement, as noted in a statement from the ACCI on Saturday.

This meeting is particularly significant given the drastic drop in Afghanistan's transit trade with Pakistan, which plummeted to USD 367 million in FY26 from approximately USD 5 billion in FY21, as Afghanistan increasingly turns to alternative trade routes, notably through Iran.

India has been enhancing its connectivity with Afghanistan via Iran's Chabahar port, which offers direct access to Afghanistan while circumventing Pakistan, which restricts overland transit of Indian goods.

In the fiscal year 2025-26, bilateral trade between India and Afghanistan reached USD 907.85 million.

India's engagement with Kabul has been on the rise, highlighted by the recent visit of Afghan Agriculture Minister Mawlawi Ataullah Omari to New Delhi earlier this month.

Hashemi reiterated the ACCI's dedication to fostering long-term economic collaboration with India, stressing the need for improved trade processes and the development of private sector institutions.

During his recent trip to India, Hashemi underscored the importance of maintaining and enhancing economic cooperation in sectors such as agricultural exports, handicrafts, mining, and mineral resources.

He also proposed several strategic initiatives aimed at boosting Afghanistan's exports, which include expanding access to target markets, enhancing logistics infrastructure, and easing the business visa process.

The Indian ambassador responded positively to these proposals, reaffirming India's commitment to support the identified areas of collaboration. Plans are in motion to organize joint trade exhibitions, specialized business forums, and the exchange of trade delegations between the two nations.

The ACCI noted that both parties agreed to pursue sustainable cooperation in trade, investment, and infrastructure development, aiming to strengthen long-term economic, political, and cultural relationships based on transparency, efficiency, and mutual benefit.

Over the past five years, India-Afghanistan bilateral trade has consistently hovered around the USD 1 billion mark.

India has constructed the 218-km Zaranj-Delaram highway in western Afghanistan, connecting the Iranian border with Afghanistan's ring road network, facilitating trade and humanitarian aid. This route is considered a vital element of India's connectivity strategy with Afghanistan and Central Asia.