India, Afghanistan aim to improve ties
Afghanistan wants Indian companies to come and invest in the country, now that bilateral ties are improving and trade between the two nations has touched $1 billion. “Our bilateral trade is $1 billion today and slated to increase exponentially,” said Alhaj Nooruddin Azizi, minister for industry & commerce, Afghanistan. “We are now inviting Indian companies to invest in Afghanistan, and we will offer land at low costs and provide a safe environment for them to work in.’’ The country is seeking investors in mining and rare earth minerals, and semi-precious stones.
Afghanistan has vast, untapped mineral resources, estimated to be worth nearly $1 trillion, including rare earth minerals, lithium, copper, gold, iron ore and gemstones, such as emeralds and lapiz lazuli. The mining sector is at present dominated by small-scale operations, and this is the focus area where the Taliban-led government is inviting investors.
It may be recalled that in June this year, Business India conducted the first-ever interview by an Indian journalist with Azizi, where he spoke about enhancing bilateral ties with India. There are multilateral trade corridors between India and Afghanistan. The land route, which comes via Pakistan, is unstable due to strained ties with India and Afghanistan, too. However, Afghanistan is looking at enhancing trade through air routes and also via Chabahar and Gwadar ports, said Azizi. Most of the trade at present is in agricultural produce and medicines.
Azizi was in India on the invitation of the government of India for six days, during which time he met S. Jaishankar, minister for external affairs, and Piyush Goyal, minister for commerce. “Our discussions reflected a shared commitment to advancing economic co-operation and expanding bilateral trade by facilitating smoother movement of goods and investment,” said Goyal, after meeting Azizi. “We reaffirmed our resolve to deepen mutually beneficial partnership and further strengthen people-to-people ties.’’
Diplomatic ties, too, are being upgraded on a reciprocal basis, and an Afghan trade attaché is expected to be in India by December. “Our diplomatic ties have improved, and we would like more visas to be granted to Afghan nationals, who seek education and health care,” Azizi told Business India. “It is a matter of time before India recognises us as a government, but until then, things are moving well”.
“We discussed ways to strengthen our trade, connectivity and people-to-people ties,” said Jaishankar, after meeting Azizi. “We have reiterated India’s support for the development and welfare of the people of Afghanistan.’’
Air-freight corridors
During Azizi’s interaction with the Indian business community organised by the PHD Chambers of Commerce & Industry (PHDCCI), Anand Prakash, joint secretary (Pakistan, Afghanistan, Iran), ministry of external affairs, affirmed that the air-freight corridors between Kabul and major Indian cities will be reactivated, so that cargo operations may begin soon. “There are deep civilisational ties between India and Afghanistan, and we are reactivating the joint working group on trade, commerce & investment,” said Prakash.
Meanwhile, Afghanistan is also hoping that Indian healthcare companies will invest in a hospital in the country. At present, as part of India’s ongoing healthcare co-operation with Afghanistan, several projects are being undertaken, including the establishment of a Thalassemia Centre, a modern diagnostic centre and replacement of the heating system at the Indira Gandhi Institute of Child Health (IGICH) in Kabul. Additionally, India will construct a 30-bed hospital in Kabul’s Bagrami district, an Oncology Centre and a Trauma Centre in Kabul and five maternity health clinics in the provinces of Paktika, Khost and Paktia. He also said that women entrepreneurs were welcome to take part in businesses like carpet weaving, textiles and jewellery.
Afghanistan is also hoping for more reciprocal fairs and exhibitions with India. Azizi also visited the 43rd India International Trade Fair, which had a large participation by Afghanistan, primarily selling dry fruits. “We hope that the non-tariff fees would be reduced to zero in India and also that there will be direct linkages between banks in India and Afghanistan, which will make it easier for both countries to enhance trade and commerce,’’ the minister added.
This is the second high-level ministerial visit by Afghanistan to India within a month. In October, Afghanistan’s Foreign Minister Mawlawi Amir Khan Muttaqi visited Delhi.