In a worrying development for Pakistan — which has been at odds with Afghanistan’s ruling Taliban, which even triggered fears of a full-blown Pakistan-Taliban war– India and Afghanistan are developing closer ties, with bilateral trade between the Kabul and New Delhi reaching an impressive $763 million in the last 10 months.
India-Afghanistan bilateral trade reaches $763 million
Akhundzada Abdul Salam Javed, the spokesperson of Afghanistan’s Ministry of Industry and Commerce (MoCI), revealed that Afghanistan has a positive trade balance with India, with Kabul exporting more goods from New Delhi that imports, which has bolstered Afghanistan’s exports and its foreign reserves.
Out of the $763 bilateral trade in the last 10 months, Afghanistan export share was $541 million, the spokesperson said, according to Tolo News. “In the first 10 months of this financial year, trade between Afghanistan and India reached $ 763 million, of which Afghanistan’s exports are $ 541 million and imports from India are $ 222 million,” he said.
What does India import from Afghanistan?
As per the Tolo News report, India imported dried figs, asafetida, saffron, raisins, cumin and almonds from Afghanistan, with trade between the two countries reaching $763 million, making New Delhi, the largest trading partner of Kabul after Pakistan and Iran. India-Afghanistan trade takes place via routes like Karachi, Chabahar Port, Wagah Border and Bandar Abbas, while a small portion also goes through Pakistan.
India preferred market for Afghan products
Notably, the Afghanistan Chamber of Commerce and Investment (ACCI), has named the India as the preferred marketplace for Afghan products, and advised the Taliban regime to make efforts to increase trade activity with New Delhi.
In its report, the ACCI has urged Kabul to work on a deal with New Delhi to ensure than Afghan businessmen can acquire an Indian visa without any hassle. “Our trade relations with India are strong, and there is immense potential for further expanding trade between the two countries going in the near future,” said ACCI member Khan Jan Alokozay.
Afghan business want more trade with India
Alokozay noted that the major reason for the decline in imports from India is due to the difficulties faced by Afghan businessmen in acquiring business visas, thus preventing them from visiting India for business purposes.
Afghan businessman have urged the Taliban government to form a commission to resolve trade-related challenges and promote more trade with India.
“A vision should be developed for import and export and a special commission needs to be set up by bringing all the institutions together. Its job should be to resolve issues like providing visas on time, solving banking problems, obstacles in transportation and transit,” Tolo News quoted an Afghan businessman, Omid Haidari, as saying.
Notably, Afghanistan’s acting foreign minister had earlier met India’s Foreign Secretary Vikram Misri to discuss strengthening diplomatic ties, facilitating trade for Afghan businesses, and enhancing economic and commercial ties. During the meeting, Misri had reaffirmed New Delhi’s commitment to expanding political and economic ties with Afghanistan.
Pakistan-Taliban war
While India and Afghanistan are building closer ties, tensions between Pakistan and Afghanistan have reached a boiling point in recent months, triggering fears of a Pakistan-Taliban war.
Tensions escalated after Pakistan conducted a wave of airstrikes on the Tehreek-e-Taliban Pakistan (TTP) terror group inside Afghanistan, who responded by launching a series of attacks on the Pakistani army, killing several personnel, including a Major rank officer.
However, the Taliban’s Ministry of Defence argued that the strike also hit “Waziristani refugees,” disputing the claim that only militants were targeted. This escalation in violence has sparked tensions between Afghanistan and Pakistan, with the Taliban warning of retaliation.
In December, the Pakistan-Taliban ‘war’, witnessed a severe escalation as Afghan Taliban fighters attacked the Pakistani Army in Kurram area near the Pakistan-Afghanistan border, killing at least one Pakistani armed forces personnel, and injuring at least nine.
Three Taliban fighters were also killed in retaliatory firing, the Pakistan Army, had said.