The Afghanistan Chamber of Commerce and Investment (ACCI) has called for enhanced trade and investment relationships with India, emphasising the need for streamlined business procedures and the reduction of administrative challenges. These discussions occurred during a meeting between ACCI Chairman Sayed Karim Hashemi and Indian Ambassador to Afghanistan Yatin Patel in Kabul. This meeting is part of a broader strategic and diplomatic dialogue between the two nations.

Current Trade Dynamics and Challenges

Recent developments indicate a significant decline in Afghanistan’s transit trade with Pakistan, which plunged to $367 million in the fiscal year 2025-26 from approximately $5 billion in fiscal year 2020-21. This drop highlights Afghanistan’s shift towards alternative trade routes, notably through Iran. India has been actively working to strengthen its connectivity with Afghanistan via Iran’s Chabahar port, which serves as a critical passage for Indian goods, circumventing Pakistan’s limitations on overland transit.

During the meeting, Hashemi reaffirmed the ACCI’s commitment to fostering long-term economic cooperation with India. He underscored the necessity for improved trade procedures and bolstered institutional development within Afghanistan’s private sector. Hashemi’s recent trip to India played a pivotal role in highlighting the importance of continuing and enhancing economic collaboration in areas such as agricultural exports, handicrafts, mining, and mineral resources.

The ACCI statement further elaborated that Hashemi proposed strategic initiatives aimed at increasing Afghanistan’s export capabilities. These included suggestions to broaden access to target markets, enhance logistics infrastructure, and facilitate the issuance of business visas for investors and entrepreneurs.

Response from the Indian Embassy

In response to the proposals presented, the Indian ambassador expressed support for the identified areas of collaboration. He noted that plans are in progress to organise joint trade exhibitions, specialised business forums, and exchanges of trade delegations between Afghanistan and India. This illustrates India’s commitment to reinforcing its ties with Afghanistan and facilitating cooperative ventures.

Both parties concurred on the importance of pursuing sustainable partnerships in trade, investment, and infrastructure development. The discussions highlighted the goal of strengthening long-term economic, political, and cultural relations based on principles of transparency, efficiency, and mutual benefit.

The bilateral trade volume between India and Afghanistan was recorded at $907.85 million in the financial year 2025-26. This figure has remained relatively stable, hovering around the $1 billion mark over the past five years. Moreover, India has intensified its engagement with Afghanistan, exemplified by the visit of Afghan Agriculture Minister Mawlawi Ataullah Omari to New Delhi earlier this month.

Infrastructure Developments by India

India has also actively contributed to infrastructure development within Afghanistan, most notably through the construction of the 218-km Zaranj-Delaram highway. This vital link connects the Iranian border with Afghanistan’s ring road network, facilitating both trade and humanitarian supplies. Such initiatives underscore India’s commitment to enhancing economic and logistical ties with Afghanistan and supporting its neighbouring country in overcoming challenges related to trade and connectivity.

The latest discussions in Kabul have therefore centred on the prospects of expanding trade, improving connectivity, and reinforcing long-term economic collaboration between Afghanistan and India, marking a significant step forward in their bilateral relations.

Long or Short, get news the way you like. No ads. No redirections. Download Newspin and Stay Alert, The CSR Journal Mobile app, for fast, crisp, clean updates!

App Store –  https://apps.apple.com/in/app/newspin/id6746449540 

Google Play Store – https://play.google.com/store/apps/details?id=com.inventifweb.newspin&pcampaignid=web_share