India-Afghanistan Diplomatic and Trade Relations

Four years after withdrawing its officials from Kabul due to the Taliban's takeover in 2021, India has decided to upgrade its technical mission in Kabul to an embassy and renew development efforts in Afghanistan.

Enhancing Trade and Development

• India and Afghanistan are set to boost trade and commercial ties, particularly in the mining sector, and restore the air freight corridor.
• Afghan Foreign Minister Amir Khan Muttaqi invited Indian investments in Afghanistan’s mining sector, which was positively received by Indian Minister S. Jaishankar.
• Afghanistan seeks India's assistance in technology and expertise for the mining, health, and power-generation sectors.

Resumption of Air Freight Corridor

• The air freight corridor, launched in 2017, resumed operations, enhancing trade between the two countries.
• Previously, nearly 1,000 flights carried goods worth over $216 million until August 2020.

Chabahar Port and Trade Facilitation

• Muttaqi expressed support for India-Afghanistan trade through Iran’s Chabahar Port.
• From 2018 to 2020, the port handled over 5,000 containers, ferrying significant quantities of wheat and pulses.

Diplomatic Engagement and Regional Politics

• Kabul plans to send diplomats to India to enhance bilateral relations.
• India has not recognized the Taliban government, emphasizing the need for an inclusive government in Kabul.
• Muttaqi assured India that Afghan soil would not be used against India’s interests.
• Criticism of recent Pakistan attacks on Afghan border areas was voiced by Muttaqi.

Future Projects and Assistance

• Discussions included maintaining and repairing existing projects and completing others with Indian assistance.
• India has resumed food assistance and committed to new projects, including a 30-bed hospital in Kabul.

Visa Facilitation

• India introduced a new visa module for Afghan nationals, increasing visa issuance in medical, business, and student categories.

Background and Strategic Interests

• Prior to 2021, India was engaged in over 500 development projects across Afghanistan.
• Afghanistan is crucial for India's trade with Central Asia and has mineral reserves estimated at $1 trillion.
• China remains active in Afghanistan’s mining sector since 2021.