Afghanistan Seeks Stronger Trade Ties With India

Afghanistan's Chamber of Commerce and Investment (ACCI) has called for stronger trade and investment ties with India. The proposal was discussed during a meeting in Kabul between ACCI Chairman Sayed Karim Hashemi and Indian Ambassador to Afghanistan Yatin Patel.

The meeting focused on trade facilitation and economic cooperation between the two countries. Hashemi reaffirmed the chamber's commitment to long-term economic cooperation with India and stressed the need to improve trade procedures and strengthen institutional support for the private sector.

Hashemi also presented several strategic proposals aimed at increasing Afghanistan's exports, including expanding access to target markets, improving logistics infrastructure, and facilitating the issuance of business visas. The proposals were made in the framework of a strategic and diplomatic dialogue between the two countries.

Responding to the proposals, Patel reaffirmed India's support in the identified areas of cooperation. He stated that plans are underway to organise joint trade exhibitions, specialised business forums, and the exchange of trade delegations between the two countries.

The ACCI added that both sides agreed to pursue sustainable cooperation in trade, investment and infrastructure development while strengthening long-term economic, political and cultural ties based on transparency, efficiency and mutual benefit.

The meeting comes as Afghanistan's transit trade with neighbouring Pakistan has declined sharply, falling to USD 367 million in FY26 from around USD 5 billion in FY21. This decline has prompted Afghanistan to explore alternative trade routes, including through Iran.

India has expanded connectivity with Afghanistan through Iran's Chabahar port, providing direct access to the landlocked country while bypassing Pakistan. India-Afghanistan bilateral trade stood at USD 907.85 million in 2025-26 and has remained close to the USD 1 billion mark over the past five years.

As part of its connectivity strategy with Afghanistan and Central Asia, India built the 218-km Zaranj-Delaram highway in western Afghanistan, linking the Iranian border to Afghanistan's ring road network to facilitate trade and humanitarian supplies.

The development is significant for India's trade relations with Afghanistan and Central Asia. It is expected to boost trade and economic cooperation between the two countries and promote regional connectivity.

In recent years, India has stepped up engagement with Kabul, with Afghan Agriculture Minister Mawlawi Ataullah Omari visiting New Delhi earlier this month. The visit was seen as a significant step towards strengthening bilateral ties between the two countries.

The proposed trade ties between India and Afghanistan are expected to have a positive impact on the regional economy. It is likely to promote economic growth, create jobs and increase trade volumes between the two countries.

In conclusion, the proposal by Afghanistan's top trading body to strengthen trade and investment ties with India is a significant development in the region. It is expected to promote economic cooperation, trade and regional connectivity between the two countries and have a positive impact on the regional economy.