India’s trade equation with Afghanistan witnessed a shift after the Taliban gained power in August 2021. Imports touched on a record $642.29 million in 2023-24, plunging to a 16-year low, causing an unusual trade deficit, the Commerce Department has revealed. data.
This shift has gained importance as New Delhi has launched the highest level of contact with the Taliban regime, and the latter also expressed interest in strengthening political and economic ties with India, stating that it has been “a critical region.” “Technology and economic power.”
Recent talks between India’s Foreign Secretary Vikram Mithri and Taliban Foreign Minister Amir Khan Muttaki have been a factor in expanding the Iranian port of Chabahar, which India is developing to bypass Pakistan’s Karachi and Gwadar ports. It is reportedly focused on leveraging.
Government data shows that exports to Afghanistan were worth $825.78 million and imports were $5949 million between 2020 and 2021 before the Taliban acquired it. India’s exports fell to $554.47 million between 2021-22, $437.05 million between 2022-23 and $355.555 million between 2023-24.
Conversely, imports from Afghanistan saw a steady increase of $594.9 million to $5193 million from 2021-22, and $64229 million from 2023-24. I did. The only exception is 2022-23 when imports saw a decline of $45,281 million from $58.12 million.
The last time India saw a trade deficit with Afghanistan ($0.73 million) was in 2000-01.
In 2023-24, the top items that India imported from Afghanistan were mainly agricultural products.
The story continues under this ad
Last year, India imported 29,123 tonnes of figs, with almost the entire amount coming from Afghanistan. Similarly, Kabul was the largest source of asafeetida, raisins and garlic.
Apple Imports
Over the past two years, Afghanistan has also appeared as a leading Apple supplier in India, surpassing traditional suppliers like Italy and the US. In its final fiscal year, it was the third largest supplier of apples to India. The only two countries before that were Iran and Türkiye.
India’s exports to Afghanistan mainly include medicines, vaccines, soybean meals and clothing.
In the first seven months of the current fiscal year (April to October), India’s trade deficit with Afghanistan reached $125.7 million, with New Delhi exports of $193 million and imports of $300 million It was $21.3 million.
The story continues under this ad
Bilateral trade between India and Afghanistan rose to an all-time high of $1.5 billion in 2019-20, just before the Covid-19 outbreak. The following year, the second Covid Wave in 2020-21 fell to $1.3 billion, and in 2021 to $1.06 billion. In 2022-23, it fell below the 1 billion mark to $889 million, but also rose to $997.74 million from 2023-24. In the first seven months of current finances, bilateral trade between the two countries reached $517.32 million. Bilateral trade with Afghanistan in 2023-24 accounts for just 0.09% of India’s total trade of $111.5 billion, with Kabul ranking 82nd in New Delhi’s trading partner. It is important to note that this has been done.
Demand for Dried Fruits
A truck loaded with dried Afghan fruits travels from Kandahar to the Waga border via Pakistan. Traders say the jump in imports of dried fruits in Afghanistan is attributed to two factors: increased demand after the Taliban acquisition of Kabul and ease of trade.
Deepak Agrawal, Nuts and Dry Fruits Council India (NDFCI) said: India imports a significant amount of dried fruit and is not obligated to be from Afghanistan. Contrary to perception, trade actually made post-Taliban acquisitions easier. ”
Poppy’s Saffron
Senior diplomat and former ambassador Jayan Prasad said India’s exports do not reflect the value of items sent in recent years as humanitarian aid to Afghanistan.
The story continues under this ad
“Currently, India has unfrozen visas for Afghan businessmen. So trade will increase, but will be progressive at first… It will take a little time to return on the day before 2001. It’s going to take it…” Prasad said.
He said, “It’s encouraging to see saffron coming from Afghanistan. The Afghan government encouraged the cultivation of saffron to replace the country’s poppy cultivation. In 2008-09 It has been started and is still ongoing. Their aim was to encourage the cultivation of saffron so that people leave the cultivation of poppies.”
“India-Afghanistan’s trade reflects a blend of economic cooperation and strategic priorities, focusing on the stability of India’s region. Political challenges in Afghanistan and alternatives like the port of Chabahar in Iran. Despite its reliance on the route, trade continues, supported by India’s investment in projects such as Salmadam and the Afghan Parliament. Ajay, founder of the Global Trade Research Initiative (GTRI), a trade research institute Srivastava said:
Srivastava said: “The Taliban’s return to power in 2021 has disrupted trade and created security and logistical hurdles, but trade is gradually reopening with cautious optimism. India has reinstated the use of Chabahar. It plans to deepen relations by expanding, exploring new trade routes and supporting Afghanistan’s economic recovery through development and capacity building. These efforts will increase regional ties and China’s China The influence of the company is part of India’s broader strategy to promote influence in Central Asia.
