India has always been a strong proponent of an Afghan-led, Afghan-owned, broad-based and inclusive process of peace and reconciliation in Afghanistan. However, a collapse of the Afghan government and return of the Taliban marks the beginning of a new phase in the India-Afghanistan relationship.
India’s trade and investment with c: Given the geographical proximity and historical linkages, India should be a natural trading partner for Afghanistan. Bilateral trade ties have, nevertheless, stayed below their potential due to the landlocked mountainous terrain of Afghanistan and the difficulty of land transit via Pakistan.
However, the launch of a dedicated air-freight corridor and operationalization of the Chabahar Port in Iran in 2017 gave a much-needed impetus to trade. India’s untapped export potential in Afghanistan is estimated at $825.9 million. India has a significant comparative advantage and thus export potential in pharmaceutical products and transport vehicles, apart from apparel, etc. It is pertinent to note that in the post-Taliban era, India’s merchandise trade with Afghanistan witnessed a 20-fold increase (since 2002). In 2017, bilateral trade crossed the $1 billion mark, and in 2020, it was estimated at $1.4 billion. Sugar and sugar confectionery, man-made filaments, apparel and pharmaceutical products are India’s top items of export to Afghanistan. Trade is tilted in favour of India, which has consistently maintained a trade surplus with Afghanistan. It was estimated at $344 million in 2020.
India and Afghanistan signed a strategic partnership agreement in October 2011. This provided Afghanistan with assistance in rebuilding its infrastructure and institutions. The construction of Afghanistan’s parliament building, restoration of its Stor Palace, rebuilding of Habibia High School and reconstruction of its Salma dam, now known as the Afghan-India Friendship Dam, are among the various projects carried out by India. These projects stand as testimony to India’s participation in the development of Afghanistan. Read More at https://www.livemint.com/opinion/online-views/will-india-s-decades-of-goodwill-in-afghanistan-vanish-overnight-11629216051693.html
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