Business
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.
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, Iran explore expansion of trade and transit via Chabahar Port
Officials described the visit as part of ongoing efforts to strengthen regional cooperation and establish reliable, cost-effective transit corridors for Afghan exports and imports.
The Ministry of Industry and Commerce of the Islamic Emirate of Afghanistan says a technical delegation has completed a visit to Iran to assess transit and trade opportunities, emphasizing the expansion of commercial activity through the strategic Chabahar Port.
Abdul Salam Javad Akhundzada, the ministry’s spokesman, told Afghan Voice Agency (AVA) that the delegation examined Iran’s major transit routes, including the ports of Chabahar and Bandar Abbas, and held meetings with Iranian officials to discuss ways to strengthen trade connectivity between the two countries.
According to Akhundzada, the Afghan team conducted a comprehensive review of port operations, transit facilities, and transportation infrastructure, with its findings shared with Industry and Commerce Minister Nooruddin Azizi.
Azizi praised the delegation’s efforts and reiterated Kabul’s commitment to improving regional trade and logistics. “We are working seriously to expand trade routes and create greater facilities for Afghan traders,” he said, noting that leveraging regional transit opportunities remains a priority for Afghanistan’s economic development.
Officials described the visit as part of ongoing efforts to strengthen regional cooperation and establish reliable, cost-effective transit corridors for Afghan exports and imports.
The renewed focus on Chabahar—seen as a vital alternative to Pakistan’s ports—comes amid the continued closure of key Afghan-Pakistani border crossings due to recent security tensions.
Khan Jan Alokozai, a board member of the Afghanistan Chamber of Commerce and Investment, told AVA that the closures have disrupted trade flows through Pakistan, particularly at Karachi port. He urged that “trade and economic issues should be kept separate from political disputes” to ensure stability in regional commerce.
However, Alokozai added that if tensions with Pakistan persist, Afghanistan will prioritize alternative routes through Iran and Central Asia, including expanding cooperation via Chabahar, which provides access to global markets through the Arabian Sea.
The Chabahar Port, developed with Indian assistance, has long been viewed as a key regional hub offering landlocked Afghanistan a direct maritime link bypassing Pakistan.
Business
Ariana Airlines slashes cargo fees to boost Afghanistan’s trade
Ariana Airlines has been directed to acquire a dedicated cargo aircraft as soon as possible.
In a significant development aimed at facilitating trade, the Economic Deputy of the Office of the Prime Minister, Mullah Abdul Ghani Baradar, announced new measures regarding cargo transport costs using Ariana Airlines.
Under the new decision, the cost of transporting export goods via Ariana Airlines has been reduced to $1 per kilogram, while the fee for importing commercial goods has been set at $0.80 per kilogram.
The Economic Deputy has also instructed the Ministries of Finance, Transport, and Civil Aviation to provide a 90 percent discount on their service fees for Ariana Airlines, further supporting the company’s operations.
In addition, Ariana Airlines has been directed to acquire a dedicated cargo aircraft as soon as possible to increase its capacity for transporting both export and import goods, thereby streamlining trade operations across the country.
Officials say these measures are expected to have a positive impact on Afghanistan’s economy, enhancing trade efficiency, boosting exports, and improving access to imported goods.
Business
Another US sanctions waiver for Iran port boosts India’s Afghanistan plan
According to reliable sources, the existing waiver expired on Tuesday, but following intensive negotiations, India succeeded in obtaining an extension from Washington.
India has secured an extension of the US sanctions waiver for Iran’s Chabahar Port until early next year — a move that strengthens New Delhi’s regional connectivity strategy by providing a crucial gateway to Afghanistan, Central Asia, and parts of Eastern Russia.
According to reliable sources, the existing waiver expired on Tuesday, but following intensive negotiations, India succeeded in obtaining an extension from Washington. Indian officials emphasized the port’s strategic importance for the effectiveness of its regional connectivity and humanitarian initiatives.
Economic Times (ET) had earlier reported that New Delhi was seeking the extension after previously receiving a waiver valid until October 28. The US had initially planned to revoke the exemption by September 29 before allowing India to continue its operations under the renewed waiver.
In May 2024, India signed a 10-year agreement to operate the Chabahar Port with Iran’s Port and Maritime Organisation through Indian Ports Global Limited. The port has been central to India’s efforts to expand economic and humanitarian cooperation with Afghanistan, including the recent delivery of ambulances gifted during the Afghan foreign minister’s visit to New Delhi earlier this month.
The Islamic Emirate has also expressed interest in effectively utilizing the port to enhance its international engagement and trade access.
There are ongoing plans to link Chabahar Port with the International North-South Transport Corridor and with Central Asian nations. Uzbekistan — the world’s second doubly landlocked country after Liechtenstein — supports the initiative as part of its multipolar connectivity vision and seeks to diversify beyond China’s Belt and Road Initiative.
Sources further indicated that Russia, too, is exploring ways to use the Chabahar Port through Kazakhstan and Uzbekistan to facilitate trade with India and other Asian markets.
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