Afghanistan Minister Visits India to Boost Trade and Investment Ties

Afghanistan’s acting Minister of Industry and Commerce, Nooruddin Azizi, visited India from November 19 to 23, 2025, for talks aimed at expanding economic cooperation. This marks the second high-level visit by a Taliban minister to New Delhi in less than two months. The Indian government continues to engage Afghanistan economically without officially recognising the Taliban government.

During his visit, Azizi met India’s Commerce and Industry Minister, Piyush Goyal, and participated in the India International Trade Fair. He also held discussions with the Federation of Indian Chambers of Commerce and Industry. The main focus of the visit was to strengthen trade through the Chabahar corridor, attract Indian investment, and explore transport links connecting Afghanistan to Central Asia.

The Chabahar corridor has become a vital route for Afghan exports such as carpets, dry fruits, and medicinal herbs, especially after Pakistan imposed border restrictions and closed the Wagah–Attari trade route. In 2024–25, trade between India and Afghanistan via Chabahar and air cargo reached nearly $900 million, resulting in India’s first trade deficit with Afghanistan. Expanding this corridor is seen as essential for both countries’ economic interests.

The visit also emphasised connecting Afghanistan to Central Asia through India-supported infrastructure. India has been promoting the International North-South Transport Corridor (INSTC), linking Mumbai to Europe via Iran and Afghanistan. This corridor provides Afghanistan with an alternative route for trade, reducing dependence on Pakistan while offering India access to energy and minerals from Central Asia.

Despite these opportunities, challenges remain. International banks are cautious in dealing with Afghan entities due to sanctions, and high insurance and slow customs procedures affect trade. The Chabahar–Zahedan railway is still incomplete, and limited flight options add logistical complexity.

Afghanistan is focusing on economic deliverables such as mining contracts, agricultural exports, and electricity transit fees. Indian companies, familiar with Afghanistan and considered relatively low-risk, are potential partners for joint ventures in cement production, talc and lapis lazuli processing, and solar energy equipment assembly.

The engagement between India and Afghanistan is modest and practical. India continues to provide humanitarian aid, including over one million tonnes of wheat since 2021. Technical teams meet regularly to resolve trade issues, and visa procedures for Afghan business visitors have been eased. While this approach does not amount to political recognition, it creates a functional economic partnership with measurable results.

Azizi’s visit is expected to produce agreements on trade fair participation in 2026, investment protection for small and medium enterprises, and faster cargo movement through Chabahar. These incremental steps are significant for both countries, as consistent, low-profile progress may be more effective than high-level political announcements.

India’s policy balances strategic interest in Central Asian connectivity with caution on Taliban recognition. For Afghanistan, cooperation with India provides economic relief and reduces over-reliance on any single neighbour. The relationship remains pragmatic, limited, but steadily growing, reflecting careful planning and mutual economic benefit.