Business
Afghanistan offers tax breaks, free land to attract Indian investors
Separately, the Indian government confirmed that air cargo services between the two countries will resume shortly.
The Islamic Emirate of Afghanistan (IEA) has invited Indian businesses to expand their presence in the country, offering a package of incentives designed to boost bilateral trade and investment.
Addressing an interactive session hosted by industry body PHDCCI in New Delhi on Friday, Afghanistan’s Minister of Industry and Commerce Alhaj Nooruddin Azizi said Kabul sees major opportunities for collaboration in mining, agriculture, health and pharmaceuticals, information technology, energy and textiles.
Azizi outlined several incentives aimed at drawing Indian investors, including a 1 percent tariff on raw materials and machinery, free land for industrial projects, reliable electricity supply, and proposed five-year tax exemptions for new industries — especially those established by returning Afghan refugees.
He also encouraged the involvement of Afghan Sikh and Hindu communities, emphasising that Afghanistan is committed to maintaining a “peaceful, inclusive and business-friendly environment.”
Bilateral trade between India and Afghanistan is currently valued at around $1 billion, with both sides taking steps to deepen cooperation. These include appointing commercial attaches in each other’s embassies and reactivating the joint working group on trade, commerce and investment.
Separately, the Indian government confirmed that air cargo services between the two countries will resume shortly. Anand Prakash, Joint Secretary at the Ministry of External Affairs, said the air freight corridor on the Kabul–Delhi and Kabul–Amritsar routes “has been activated,” with cargo flights set to begin “very soon.”
“This will significantly enhance connectivity and further strengthen our trade and commercial ties,” he noted, adding that both governments believe there is “substantial potential for further growth” in bilateral trade.