India’s investment of Rs 22,251 crore stalled in Afghanistan; As trade between the two countries may come to an end.

The current situation in Afghanistan will have a direct impact on trade between India and Afghanistan. India is the largest market for Afghan products in South Asia. India has invested about INR 22,251 Cr in Afghanistan.

More than INR 10,000 crore trade between the two countries

Bilateral trade takes place between India and Afghanistan. In the fiscal year 2020-21, trade between the two countries stood at Rs 10,387 crore. Similarly, in 2019-20, the trade between the two countries was Rs 11,131 crore. In 2020-21, India exported goods worth about Rs 6,129 crore to Afghanistan, while India imported goods worth Rs 3,783 crore.

Products imported from Afghanistan

India imports cashews like raisins, walnuts, almonds, figs, pistachios, dried apricots from Afghanistan. Besides, it also imports pomegranate, apple, cherry, cantaloupe, watermelon, asafoetida, cumin, and saffron.

How is it imported?

Afghanistan is surrounded by land on all sides. That is, it has no maritime boundaries. It was exported to India from Pakistan via the Wagah border. In addition, exports have now started from the Iranian port of Chabahar. Dried fruits are supplied to India exclusively by air. Dried fruits are a major contributor to India’s exports from Afghanistan.

Products exported from India

India exports goods made from wheat, coffee, cardamom, black pepper, tobacco, coconut, and coconut flax to Afghanistan. Besides, it exports clothes, confectionery, fish products, vegetable ghee, vegetable oil. It shifts plants, chemical products, and other products including soaps, medicines, drugs, and antibiotics, engineering goods, electrical goods, rubber products, military equipment.

Will it affect India’s global business?

India has invested about Rs 22,251 crore in Afghanistan in the last 20 years. India’s strategy was to connect the Chabahar port in Iran to Afghanistan by road. Work is also underway on a road project from the port of Chabahar in Iran to Delaram in Afghanistan. This will facilitate India’s access to Central Europe via Afghanistan.

In this way, India will also be able to do business with Central Europe, but now the plan seems to be going downhill. India has done a lot for the development of Afghanistan in the last two decades. India has built a 218 km long road between Delaram and Zaranj Salma dams here. Apart from this, India has also built the parliament of Afghanistan.

For recent and latest updates regarding business news, industry trends etc. Please subscribe Newsletter from “The Enterprise World” at “Subscribe”

Did You like the post? Share it now:

Share on facebook
Facebook
Share on linkedin
LinkedIn
Share on twitter
Twitter
Share on pinterest
Pinterest

Related Posts