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Afghanistan–India bilateral trade over $1 billion in 2024-25 fiscal

India has reaffirmed its role as Afghanistan’s top export destination, a position driven largely by imports of agricultural products, including dried fruits, nuts, and medicinal herbs.

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Bilateral trade between Afghanistan and India surged past $1 billion in the financial year 2024–25, underscoring resilient economic ties amid regional instability and humanitarian challenges.

According to figures released by India’s Ministry of Commerce and Industry, total trade between the two countries totaled $1.0087 billion between April 2024 and March 2025.
Imports from Afghanistan stood at $689.81 million—marking a 7.4% year-on-year increase—while Indian exports totaled $318.91 million.

India has reaffirmed its role as Afghanistan’s top export destination, a position driven largely by imports of agricultural products, including dried fruits, nuts, and medicinal herbs.
Trade analysts credit India’s zero-tariff regime on Afghan goods as a critical factor enabling continued access to the Indian market, particularly for small-scale Afghan producers.

This preferential trade access is proving to be a lifeline for Afghanistan’s agricultural sector, with many farmers reportedly shifting from illicit opium cultivation to alternative crops supported by reliable demand from Indian buyers.
However, experts caution that the long-term success of such transitions depends on access to quality inputs, fair pricing mechanisms, and sustained institutional support.

The country remains gripped by a deepening humanitarian crisis exacerbated by mass deportations of Afghan refugees from neighboring Pakistan and Iran. The growing pressure on already limited resources is impeding both economic recovery and broader development efforts.

Despite these challenges, the expanding trade relationship with India represents a rare economic bright spot for Afghanistan.
Observers suggest it could serve as a foundation for broader regional cooperation.

 

Business

Afghanistan invites Iranian investors to expand economic cooperation

Discussions focused on expanding private-sector cooperation, increasing joint investment, and boosting bilateral trade between the two countries.

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Afghanistan has invited Iranian investors to explore business opportunities and participate in joint economic projects as the country seeks to strengthen investment and trade ties with its western neighbor.

Kamaluddin Tawhidi, head of the Afghanistan-Iran Joint Chamber of Commerce, made the appeal during a visit to Iran, where he attended the “Economic Cooperation Opportunities with Afghanistan” conference in Alborz Province, according to Iran’s state broadcaster.

Speaking at the event, Tawhidi highlighted Afghanistan’s investment potential and encouraged Iranian businesses to take advantage of opportunities across a range of economic sectors.

Discussions focused on expanding private-sector cooperation, increasing joint investment, and boosting bilateral trade between the two countries.

Tawhidi said stronger economic partnerships could create new business opportunities and support broader regional economic growth.

The meeting comes as Afghanistan continues efforts to attract foreign investment and deepen economic cooperation with neighboring countries.

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Afghanistan exports first stone shipment to US in $100,000 trade milestone

The export was coordinated through the Herat Chamber of Industries before being shipped to the U.S.

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Afghanistan has exported its first shipment of natural stone to the United States, marking a significant milestone in the country’s efforts to expand mineral exports and strengthen its foothold in international markets.

The shipment, valued at $100,000, was sent by a private Afghan company and consists of black stone extracted from the Zindajan mine in the western province of Herat.

The export was coordinated through the Herat Chamber of Industries before being shipped to the U.S.

Industry officials said the export underscores the growing potential of Afghanistan’s mining sector, which is home to vast untapped reserves of minerals and natural stone. They expressed hope that increased access to international markets would encourage investment, boost production, and create new employment opportunities.

Herat, one of Afghanistan’s principal commercial and industrial centres, has long played a key role in the country’s trade due to its strategic location and abundance of natural resources. Officials believe expanding exports of locally sourced minerals could help diversify Afghanistan’s economy and strengthen the private sector.

The shipment forms part of broader efforts to increase Afghanistan’s exports and promote the country’s mining and industrial products in global markets.

Authorities have repeatedly identified the mining sector as a key driver of long-term economic growth, with natural stone among the products expected to attract greater international demand.

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Economic Commission approves expansion of Sher Khan port to boost regional trade

The commission also approved extending the port’s operating hours in coordination with Tajikistan to facilitate the movement of a greater number of commercial vehicles and improve cross-border trade.

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Afghanistan’s Economic Commission has approved a series of measures to expand the capacity of Sher Khan Port in an effort to strengthen trade with Tajikistan, Kyrgyzstan, and China.

The commission, chaired by Deputy Prime Minister for Economic Affairs Mullah Abdul Ghani Baradar, met on Tuesday to review proposals submitted by the Ministry of Transport and Civil Aviation aimed at increasing regional trade through the northern border crossing.

According to the approved plan, the Ministries of Finance, Interior, and other relevant institutions will develop new infrastructure at Sher Khan Port and expand existing facilities to accommodate growing trade volumes.

The commission also approved extending the port’s operating hours in coordination with Tajikistan to facilitate the movement of a greater number of commercial vehicles and improve cross-border trade.

In addition, the Ministry of Finance was instructed to allocate funding for the construction of a logistics center at Sher Khan Port. The facility will provide customs services, warehousing, cargo handling, and freight-loading operations to streamline trade activities.

The meeting also directed the Ministry of Public Works to construct the necessary railway infrastructure inside Afghanistan to activate the ECO railway corridor, a regional transport initiative linking Iran, Afghanistan, Tajikistan, and Kyrgyzstan under the framework of the Economic Cooperation Organization (ECO).

Separately, the commission decided that several state-owned entities will transfer their scrap iron to the National Development Company, which will process the material into standard steel reinforcing bars (rebar) for use in major government infrastructure projects.

The commission also endorsed 37 national standards and 12 testing methods proposed by the National Standards and Quality Authority. The standards cover agricultural products, food items, pharmaceuticals, construction materials, telecommunications and electrical equipment, chemicals, plastics, medical equipment, and several other sectors. Officials said the standards were developed in line with Afghanistan’s current needs and international benchmarks.

The meeting concluded with the presentation of follow-up reports on a number of ongoing issues, and relevant institutions were given the necessary directives. All decisions adopted during the session have been forwarded to the Office of the Supreme Leader for final approval.

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