Post by : Rameen Ariff

Nooruddin Azizi, Afghanistan’s acting Minister of Industry and Commerce, traveled to India from November 19 to 23, 2025, aiming to foster economic collaboration. This marks the second high-level visit by a Taliban official to New Delhi within a two-month span, as India continues to engage with Afghanistan economically, despite not officially recognizing the Taliban regime.

During his stay, Azizi had a series of meetings with India's Commerce and Industry Minister, Piyush Goyal, and participated in the India International Trade Fair. His discussions with the Federation of Indian Chambers of Commerce and Industry were centered on enhancing trade via the Chabahar corridor, attracting investments from India, and examining transport links connecting Afghanistan to Central Asia.

The Chabahar corridor has emerged as a crucial pathway for Afghan exports, including carpets, dry fruits, and medicinal herbs, particularly after border restrictions imposed by Pakistan curtailed trade through the Wagah–Attari route. In the fiscal year 2024–25, trade between India and Afghanistan via Chabahar and air cargo reached approximately $900 million, resulting in India’s inaugural trade deficit with Afghanistan. Expanding this corridor is considered vital for the economic interests of both nations.

The discussions also underlined the significance of connecting Afghanistan to Central Asia through Indian-backed infrastructure. India is advocating for the International North-South Transport Corridor (INSTC), linking Mumbai to Europe through Iran and Afghanistan. This corridor offers Afghanistan an alternative route for trade, thereby lessening its dependence on Pakistan, while granting India access to energy and resources from Central Asia.

Despite these prospects, obstacles persist. International financial institutions remain hesitant in engaging with Afghan businesses due to existing sanctions, while exorbitant insurance rates and sluggish customs procedures hinder trade. The Chabahar–Zahedan railway is not yet complete, and limited flight options complicate logistics further.

Afghanistan is now concentrating on economic deliverables such as mining agreements, agricultural exports, and transit fees for electricity. Indian enterprises, being familiar with the Afghan market and perceived as relatively low-risk, are seen as potential partners for collaborative ventures in cement production, lapis lazuli processing, and solar energy equipment assembly.

The India-Afghanistan engagement remains modest yet practical. Since 2021, India has been providing humanitarian assistance, including over a million tons of wheat. Regular meetings among technical teams aim to address trade challenges, and visa regulations for Afghan business visitors have been relaxed. Although this bilateral rapport does not equate to political recognition, it facilitates an effective economic partnership with observable benefits.

Azizi’s visit is poised to yield agreements for participation in the 2026 trade fair, investment protection for small and medium enterprises, and expedited cargo movement through Chabahar. Such incremental steps hold considerable significance for both nations, as steady, low-profile progress may prove more beneficial than grand political gestures.

India's strategic approach balances its interests in connecting with Central Asia while exercising caution towards recognizing the Taliban. For Afghanistan, collaborating with India offers economic opportunities and mitigates dependency on any single neighbor. This relationship continues to evolve pragmatically and steadily, reflecting a commitment to mutual economic advantage.

#Global