Afghanistan Seeks Indian Investment in Mining, Power Projects

New Delhi: A high-level Afghan delegation led by Afghanistan’s minister of industry and commerce, Alhaj Nooruddin Azizi, began a five-day official visit to India on Wednesday, aimed at strengthening bilateral trade and investment ties. Soon after landing in New Delhi, the delegation visited the India International Trade Fair (IITF) in the capital. Following the tour, minister Azizi met Afghan traders based in India to discuss market access and expansion opportunities.

Officials said this was the first visit by an Afghan minister to the India Trade Promotion Organisation (ITPO) since 2021 and comes against the backdrop of escalating tensions between Afghanistan and Pakistan, including repeated border closures that have disrupted Afghan exports and prompted Kabul to diversify trade channels, especially with India. They added that Afghanistan is seeking Indian investment in its mining sector and hydroelectric projects, and is exploring options to bypass Pakistan for improved connectivity. In this context, the Iranian port of Chabahar, which offers India and Afghanistan sea-land access without relying on Pakistan, remains crucial.

India’s key exports to Afghanistan include pharmaceuticals, textiles, machinery, and food items such as sugar, tea and rice, while Afghan imports to India consist mainly of agricultural products and minerals. India recently upgraded its three-year-old “technical mission” in Kabul to a full-fledged embassy with immediate effect.

On Wednesday, ITPO managing director Neeraj Kharwal received minister Azizi at the IITF venue and briefed him on the ongoing fair, available facilities, and future opportunities for Afghanistan to participate. The minister also visited several stalls, including Afghan pavilions showcasing local products.

Earlier this month, external affairs minister S. Jaishankar and Afghan foreign minister and senior Taliban leader Mawlawi Amir Khan Muttaqi discussed the “regional situation” over phone, days after a deadly border clash between Afghanistan and Pakistan. Muttaqi had also visited New Delhi last month, even as India appears to be gradually moving toward full diplomatic engagement with the Taliban regime.

Ties between Islamabad and the Afghan Taliban have deteriorated in recent years following repeated attacks on Pakistani security forces by Tehreek-e-Taliban Pakistan (TTP). Criticising Pakistan and expressing support for Kabul, New Delhi had recently said: “Pakistan is infuriated with Afghanistan exercising sovereignty over its own territories. Pakistan seems to think it has the right to practice cross-border terrorism with impunity… India remains fully committed to the sovereignty, territorial integrity and independence of Afghanistan.” India had earlier remarked that Pakistan hosts terrorists and “blames its neighbours for its own internal failures.”

At a press conference in New Delhi last month, Muttaqi claimed that India had agreed to allow Afghanistan to post diplomats at its embassy. When asked whether Kabul would appoint an Ambassador, he said postings would begin soon and be scaled up in phases.

The Taliban returned to power in August 2021 after the withdrawal of US forces, leading to the collapse of the Ashraf Ghani government. India evacuated its diplomats at the time, and all Indian personnel working on infrastructure projects left the country. New Delhi later established a “technical team” at its embassy in June 2022 as relations with the Taliban began to improve.