Afghanistan Seeks Deeper Economic Ties with India
Afghanistan's primary trade organization, the Afghanistan Chamber of Commerce and Investment (ACCI), is actively pursuing enhanced economic and investment collaboration with India. Sayed Karim Hashemi, Chairman of the ACCI, recently met with Indian Ambassador to Afghanistan Yatin Patel in Kabul to discuss proposals for simplifying business procedures, reducing administrative hurdles, and expediting the issuance of business visas for Afghan traders.
This outreach to India occurs against a backdrop of a significant decline in Afghanistan's transit trade with Pakistan. According to ACCI figures, transit trade between Afghanistan and Pakistan crashed from approximately $5 billion in fiscal year 2021 to just $367 million in fiscal year 2026. This steep fall has prompted Afghanistan to increasingly explore and utilize alternative trade routes, including those through Iran.
Strategic Shift in Trade Routes
India has been instrumental in expanding connectivity options for Afghanistan, particularly through Iran's Chabahar Port. This port offers landlocked Afghanistan direct access to international markets, bypassing Pakistan, which has historically restricted overland transit of Indian goods to Afghanistan. Additionally, India constructed the 218-kilometer Zaranj-Delaram highway in western Afghanistan, linking the Iranian border to Afghanistan's vital ring road network, further facilitating trade and humanitarian aid.
Despite challenges, bilateral trade between India and Afghanistan has remained relatively stable, standing at $907.85 million in 2025-26 and broadly maintaining a level around the $1 billion mark over the past five years.
Key Proposals for Enhanced Cooperation
During the recent discussions, ACCI Chairman Hashemi reiterated Afghanistan's commitment to fostering long-term economic cooperation with India. He emphasized the critical need to streamline trade processes, bolster private sector institutions, and expand market access for Afghan exports. Specific areas highlighted for deeper collaboration included agricultural exports, handicrafts, and Afghanistan's rich mining and mineral resources. Hashemi also presented strategic proposals aimed at improving logistics infrastructure and simplifying business visa procedures.
Ambassador Patel welcomed these proposals, reaffirming India's support in the identified sectors. He indicated that plans are already in motion to organize joint trade exhibitions, specialized business forums, and exchanges of trade delegations between the two nations, signaling a proactive approach from India.
Long-Term Vision for Regional Connectivity
Both sides expressed a mutual commitment to pursue long-term cooperation in trade, investment, and infrastructure development. The discussions also aimed at strengthening broader economic, political, and cultural ties based on principles of transparency, efficiency, and mutual benefit. This strategic engagement underscores a broader trend of India steadily expanding its presence and influence in Afghanistan in recent months, including a recent visit by Afghan Agriculture Minister Mawlawi Ataullah Omari to New Delhi.
India's continued investment in connectivity projects like the Zaranj-Delaram highway is a testament to its long-term vision for trade and humanitarian access, not just with Afghanistan but also with the wider Central Asian region.