Afghanistan’s Minister of Industry and Commerce, Alhaj Nooruddin Azizi, has announced a special package of incentives to attract Indian businesses. Speaking at an industry interaction in New Delhi, Azizi revealed that the Afghan government will provide free land for industrial projects, alongside tariff reductions and tax exemptions. The move is part of Kabul’s broader strategy to strengthen economic ties with India and revive trade relations that have historically been significant.
Key Sectors for Investment
The Afghan government has identified several priority sectors for Indian investors, including mining, agriculture, health and pharmaceuticals, information technology, energy, and textiles. Azizi emphasized that Afghanistan is keen to collaborate with Indian companies in these areas, offering a conducive environment with reliable electricity supply and a proposed five-year tax holiday for new industries. Special incentives are also being extended to businesses established by returning Afghan refugees, further broadening opportunities for investment.
Strengthening Connectivity and Trade
To facilitate smoother trade, Afghanistan has confirmed plans to resume air cargo services between Kabul and Indian cities. This step is expected to significantly ease the movement of goods and enhance bilateral commerce. The Afghan minister also highlighted the role of Afghan Sikh and Hindu communities in bridging ties between the two nations, encouraging their participation in new ventures. With India already a major trading partner, the new measures aim to push the bilateral trade volume beyond the current $1 billion mark.
A Strategic Partnership in the Making
Afghanistan’s outreach to Indian investors reflects its ambition to rebuild its economy and foster regional cooperation. By offering free land and tax breaks, Kabul is signaling its commitment to creating a flexible and enabling environment for foreign investment. For Indian businesses, this presents a unique opportunity to expand into untapped markets while contributing to Afghanistan’s development. As ties between the two countries show signs of improvement, the initiative could mark a new chapter in Indo-Afghan economic relations
