Afghanistan is actively pursuing expanded trade relations with India, signaling a notable shift away from its reliance on Pakistan. This move comes amid escalating tensions and border closures with Pakistan, prompting Afghanistan to seek alternative trade routes and partners.

Alhaj Nooruddin Azizi, Afghanistan's Minister of Industry and Commerce, recently embarked on a five-day visit to India to bolster bilateral trade and investment ties. This visit, which follows a similar trip by Afghan Foreign Minister Amir Khan Muttaqi in October, underscores Afghanistan's commitment to diversifying its trade routes and reducing its dependence on Pakistan.

Several factors contribute to Afghanistan's pivot towards India. Frequent border closures by Pakistan have disrupted Afghan trade and movement of people, causing significant losses to traders on both sides. Pakistan has also been accused of using "commercial and humanitarian matters as political leverage," further straining relations. These issues, coupled with ongoing security concerns and accusations of harboring militants, have led Afghanistan to actively seek alternative trade corridors.

India has emerged as a key partner in Afghanistan's efforts to diversify its trade. The two countries have historical ties and a shared interest in regional stability and economic growth. India has invested significantly in Afghanistan's infrastructure, including the Afghanistan Parliament Building, the Zaranj-Delaram Highway, and the Salma Dam.

To facilitate trade, Afghanistan is increasingly utilizing Iran's Chabahar Port, which India has invested heavily in, as a strategic link to Afghanistan and Central Asia. This port provides Afghanistan with a reliable access to the sea, bypassing Pakistan and avoiding transit disruptions. In May 2024, Iran and India signed a 10-year agreement for further development and operations at the Shahid Beheshti Terminal of Chabahar Port.

In addition to Chabahar, Afghanistan is also exploring trade routes through Central Asia, including Turkmenistan, Uzbekistan, and Tajikistan. Trade between Afghanistan and the five Central Asian states has been growing, reaching nearly $1.7 billion. However, challenges remain in terms of high transport costs, long transit times, and underdeveloped logistics for perishable goods.

To further strengthen trade ties, India and Afghanistan have agreed to establish a bilateral trade committee to explore investment opportunities in minerals, energy, and infrastructure. Discussions are also underway to enhance air connectivity, particularly for temperature-sensitive perishable exports such as fresh and dried fruits, vegetables, and medicinal herbs.

Despite the challenges, the growing trade relationship between Afghanistan and India holds significant potential for regional economic growth and cooperation. By diversifying its trade routes and strengthening ties with India, Afghanistan aims to reduce its dependence on Pakistan, enhance its economic stability, and reposition itself as a vital trade and transit hub in the region.