KABUL, Sept 26: India is aiming to forge a preferential trade agreement with Afghanistan to boost centuries-old trade through the silk route, which was choked under the Taliban, an official said on Thursday.
Indian Foreign Secretary Kanwal Sibal, speaking at the launch in the Afghan capital of an exhibition by Indian industry, said the proposal was being considered by Afghan authorities.
A team would be visiting Kabul from New Delhi to discuss the project.
Sibal also reiterated an Indian government plan to give two passenger aircraft to the Afghan government to help build the country’s infrastructure.
Afghan Commerce Minister Syed Mustafa Karzai said new industrial laws would allow 100 percent foreign direct investment and provide foreign investors complete security.
He assured Indian businessmen that “complete security” would be provided to investors who came to Afghanistan.
“We are also in talks with Pakistan to renew the transit route through Pakistan (to India),” said Karzai.
Afghan Foreign Minister Abdullah Abdullah said the industry initiative would further cement ties between the two countries and increase stability in the region.
Arun Bharat Ram, chairman of the Confederation of Indian Industry’s international wing, said the first joint venture between an Indian and Afghan firm had already been established.
“It is hoped that many more joint ventures will be concluded in the coming months,” said Bharat Ram.
India and Afghanistan had long-standing exchange of goods, for example in carpets and dried fruits, but direct trade was completely cut off under the Taliban.
Businessman fear trade will not flourish until Pakistan opens its border. The road between India and Afghanistan runs through Pakistan, but road and rail links between Pakistan and India remain cut since early this year.
Exports from India would have to be routed circuitously by sea and through Iran, but industry experts are hopeful the situation will change in the future.
As well as the road problem, businesses will have to contend with poor telephone communications as well as a rudimentary banking system.
After the defeat of the Taliban, India, which supported the Northern Alliance, was one of the first countries to open a mission in Kabul and appointed a special envoy, S.K. Lamba.—AFP