Increasing trade between Afghanistan and India; Afghanistan's exports were twice as large as its imports

Afghan Voice Agency (AVA) - Kabul: As trade relations between Afghanistan and India expand and trade interactions between Afghanistan and Pakistan decline due to political and security tensions, Abdul Salam Javad Akhundzada, spokesman for the Ministry of Industry and Commerce of the Islamic Emirate of Afghanistan, said that exports have increased unprecedentedly. Afghanistan informed India.

 

"Afghanistan's main exports to India include dried figs, fenugreek, saffron, raisins, cumin and almonds," Akhundzada said, adding that Afghanistan's exports in the first 10 months of this year were twice as large as imports.

 

He also added that the main items imported from India to Afghanistan include sugar, industrial raw materials, new clothes, peas and bananas.

 

Afghan businessmen face visa problems in trade with India

Despite the increase in trade volume between the two countries, some problems remain. Jan Agha Navid, spokesman for the Afghanistan Chamber of Commerce and Investment, told AFP that although trade relations between Afghanistan and India continue, the Indian government's failure to issue visas to Afghan businessmen has created problems in the process of trade.

 

"Afghan businessmen cannot confidently source their goods from Indian markets without visas," Navid said, stressing the need for India to facilitate visa issuance.

 

He also pointed to the problems in transferring cash between the two countries, saying: "There are still banking restrictions and traders are forced to use the method of exchanging goods for goods to solve this problem, but this solution is in the long term and based on international law. It's not sustainable."

 

Transit problems and declining imports from India

A spokesman for the Afghanistan Chamber of Commerce and Investment attributed the decline in imports from India to some transit problems, saying: "Efforts are underway to transport Indian goods that are in high demand in Afghanistan through Chabahar port and other ports. "

 

He also said that Afghanistan's exports to India have increased through Pakistan, Chabahar port and the air corridor, adding: "Fortunately, the trend of exports to India is increasing."

 

Navid also said that recently Indian businessmen, especially the private sector, had promised Afghan embassy officials that the visa problem of Afghan businessmen would be resolved and trade relations between the two countries would be strengthened in the future.

 

The World Bank's annual report, Afghanistan Economic Review, released on March 10, said Afghanistan's exports to India increased by 22 percent from January 2023 to January 2024, while during the same period, Afghanistan's exports to India increased by 22 percent. Afghanistan's exports to Pakistan grew by only 18 percent.

 

It seems that with the increase in trade between Afghanistan and India and efforts to solve existing challenges, new opportunities will be created for investors and businessmen of the two countries. Economic experts believe that if visa problems and banking restrictions are resolved, trade between Afghanistan and India could grow significantly and help strengthen the economies of both countries.

Also, given the decline in trade relations between Afghanistan and Pakistan, some experts suggest that Afghanistan should diversify its trade strategies and use alternative routes such as Chabahar port and air corridors to boost exports and imports.

 

Finally, with the continuation of economic cooperation between Kabul and New Delhi, trade challenges are expected to be reduced in the near future and a brighter horizon for economic relations between the two countries will be formed.