Afghanistan's Minister of Industry and Commerce Engages with India to Enhance Trade Relations

Afghanistan's acting Minister of Industry and Commerce, Nooruddin Azizi, was in India from November 19 to 23, 2025, to foster economic collaboration. This trip marks the second high-profile visit by a Taliban envoy to New Delhi in under two months, as India maintains economic ties with Afghanistan without officially recognizing the Taliban government.

Azizi engaged with India's Commerce and Industry Minister, Piyush Goyal, and participated in the India International Trade Fair. He also interacted with the Federation of Indian Chambers of Commerce and Industry. Key aims for the visit included enhancing trade via the Chabahar corridor, attracting investment from India, and exploring transport connections between Afghanistan and Central Asia.

The Chabahar corridor is crucial for facilitating Afghan exports—like carpets, dry fruits, and medicinal herbs—especially in light of Pakistan's border restrictions and the closure of the Wagah–Attari trade route. During the 2024–25 period, trade between India and Afghanistan through Chabahar and air cargo reached nearly $900 million, resulting in India's first-ever trade deficit with Afghanistan. Expanding this corridor has been deemed essential for the economic interests of both nations.

Additionally, the visit highlighted the goal of connecting Afghanistan to Central Asia via infrastructure supported by India. India has been advocating for the International North-South Transport Corridor (INSTC), which links Mumbai to Europe through Iran and Afghanistan. This corridor offers Afghanistan a trade alternative, decreasing reliance on Pakistan while enabling India access to Central Asian energy and mineral resources.

Despite these prospects, several challenges persist. International banks remain hesitant to transact with Afghan entities due to ongoing sanctions, and high insurance costs along with slow customs processing hinder trade. The Chabahar–Zahedan railway remains unfinished, while limited flight options complicate logistics.

Afghanistan is prioritizing economic deliverables such as mining contracts, agricultural exports, and transit fees for electricity. Indian enterprises, with experience in Afghanistan and viewed relatively low-risk, may be suitable partners for joint ventures in sectors like cement production, talc and lapis lazuli processing, and solar energy equipment assembly.

The connection between India and Afghanistan remains pragmatic and steadily evolving. India has provided humanitarian assistance exceeding one million tonnes of wheat since 2021, and technical teams convene regularly to discuss trade matters while easing visa processes for Afghan business visitors. This approach, while not a political endorsement, creates a functional economic partnership that yields tangible outcomes.

Azizi’s visit is anticipated to lead to agreements regarding participation in trade fairs in 2026, protections for investments in small and medium enterprises, and expedited cargo transit through Chabahar. Such gradual advancements are significant for both nations, as consistent progress may prove more beneficial than grandiose political declarations.

India’s strategy intends to balance its strategic interests in Central Asian connectivity with caution concerning Taliban recognition. For Afghanistan, collaborating with India offers economic relief and mitigates dependency on any single neighbour. The relationship remains practical and limited, yet is slowly expanding, embodying thoughtful planning and shared economic benefits.