Afghanistan Seeks More Indian Investment In Agri, Irrigation And Food Processing
Afghanistan has invited Indian companies to expand investments in its agriculture and livestock sectors, seeking collaboration in farm mechanisation, irrigation, food processing, renewable energy and technology transfer as the two countries look to strengthen economic engagement despite regional trade disruptions.During an event in New Delhi on Friday, Afghanistan's Minister of Agriculture, Irrigation and Livestock, Mawlawi Ataullah Omari, said nearly 80 per cent of Afghanistan's population depends on agriculture, irrigation and livestock, making the sector central to the country's economy.
Calling India a longstanding partner, Omari described India-Afghanistan relations as being rooted in centuries of friendship, trust and shared cultural heritage. He urged greater cooperation in agricultural mechanisation, certified seeds, food processing, cold-chain infrastructure, packaging, livestock development, irrigation, renewable energy and rural development.
He also invited Indian companies to invest in organic fertiliser production, agri-processing and technology transfer, while assuring that the Afghan government would facilitate investments and long-term partnerships with Indian industry.
"We are committed to creating an enabling environment for investment and building partnerships that benefit both countries," Omari said.
Mufti Noor Ahmad Noor, Charge d'Affaires at the Embassy of Afghanistan in New Delhi, said the centuries-old civilisational and people-to-people ties between the two countries continue to underpin bilateral relations.
He said recent diplomatic engagements had created fresh momentum in India-Afghanistan ties, noting that four Afghan ministers have visited India since October and political engagement has steadily progressed.
Inviting Indian businesses to explore opportunities in agriculture, water management, renewable energy, mining, infrastructure and tourism, Noor said Afghanistan today offers a secure and investment-friendly environment with significant potential for long-term investments.
He emphasised that India's expertise in modern agriculture could significantly support Afghanistan, where farming practices remain largely traditional.
"India is ahead in agriculture and agricultural machinery. It can help Afghanistan modernise its agriculture sector," Noor said, adding that water management remains one of Afghanistan's biggest challenges.
He said Afghanistan requires greater cooperation in irrigation, drinking water infrastructure and agricultural technology, while assuring Indian businesses that the Afghan Embassy would extend full support in facilitating partnerships.
Noor also said that regional geopolitical tensions, including the conflict involving Iran and the United States, have affected trade logistics. However, he added that both governments remain committed to ensuring that bilateral trade continues despite disruptions.
Industry representatives expressed concerns, highlighting that the ongoing crisis in West Asia has complicated supply chains. Exporters said the closure of Pakistan's land trade route to Afghanistan, coupled with disruptions at Iran's Chabahar Port, has left Indian businesses with limited options for transporting bulk cargo to Afghanistan, such as via Oman's Sohar Port. A representative of the rice industry said these logistical constraints have become a major challenge for exporters despite strong demand in the Afghan market.
India and Afghanistan currently share bilateral trade worth around USD 1.01 billion, with India serving as Afghanistan's largest export destination. Afghanistan exports goods worth about USD 755 million to India, primarily dried fruits, fresh fruits and spices, while India's exports to Afghanistan, valued at around USD 334 million, largely comprise packaged medicines, sugar and synthetic fibres.
India's strengths in agricultural research, farm mechanisation, food processing, cold-chain infrastructure and capacity building could contribute meaningfully to Afghanistan's agricultural development while creating mutually beneficial trade and investment opportunities.
Pages:
[1]