Diplomatist Magazine DIplomatist September 2018 | Page 78

Air cargo route to give
impetus to trade
T
he bilateral trade between India and
Afghanistan stands at $900 million, and
is expected to increase dramatically in the
next few years as an air cargo route between the
two countries has become operational, facilitating
increased trade and commerce.
Overall trade between the two nations
The two nations aim to increase their bilateral
trade to $2 billion by 2020 from the present level
of $900 million. India’s trade with Afghanistan,
however, is hampered by Pakistan’s reluctance
to open the Wagah-Attari route for bilateral trade
between the former two. India remains the single
largest market for Afghan commodities in the
region, but denial of permission from Pakistan for
the free movement of commodities has impacted
the bilateral trade.
India, however, is leaving no stone unturned
to overcome the hurdles to achieving the full
potential of trade with Afghanistan. India, with the
aim to boost bilateral trade ties, built the Zaranj-
Delaram road in Afghanistan to facilitate trade and
commerce between the two countries, apart from
offering Afghanistan another outlet to a seaport
through Chabahar.
The successful operation of the Chabahar port
in Iran would capitalise on this road to offer a new
78 • Extraordinary and Plenipotentiary Diplomatist • Vol 6 • Issue 9 • September 2018, Noida
transit route for Afghan products to reach India,
while opening a new route for India and the rest of
the world for trade with Central Asia.
In June 2017, a dedicated Air Cargo Corridor
was opened between Kabul-Delhi and Kandahar-
Delhi for promoting trade relations. It has helped
the two countries carry out the free transit of freight,
overcoming the denial of route permission from
Pakistan. During the Strategic Partnership Council
meeting, it was decided to further strengthen the
corridor and expand it to other cities in India. Over
1000 tonnes of cargo has already been transported
through the air corridor since its inauguration.
India’s main export items to Afghanistan are
textiles, pharmaceuticals, tobacco, iron & steel,
and electrical machinery, while its imports from
Afghanistan include fruits and nuts, gums and
resins, coffee, tea, and spices.
India-Afghanistan goods trade had jumped up
by nearly 22 percent to $834.5 million in 2015-
16, with India’s exports to Afghanistan amounting
$526.6 million and its imports from Afghanistan
having been worth $307.9 million. During April-
December 2016-17, the bilateral trade witnessed a
decrease, amounting $590.1 million, with India’s
exports to Afghanistan valued at $377.2 million
and its imports from Afghanistan worth $212.9
million.