India, Afghanistan Review Steps to Boost Trade and Economic Ties

India and Afghanistan have reviewed a series of measures aimed at facilitating bilateral trade and strengthening economic cooperation, with both sides focusing on reducing trade barriers, improving connectivity and creating a more supportive environment for businesses.

The discussions took place during a virtual meeting of the India-Afghanistan Joint Working Group (JWG) on Trade, Commerce and Investment. Officials from both countries participated in the meeting, including representatives from commerce, industry, customs, regulatory authorities and diplomatic missions.

The JWG examined several areas affecting bilateral commercial engagement. Key issues included trade facilitation and customs cooperation, visa facilitation for Afghan traders, banking and financial cooperation, pharmaceutical and agricultural trade, energy cooperation, investment promotion, tariff concessions, cargo connectivity and port-related matters.

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As a follow-up, India and Afghanistan agreed to strengthen institutional cooperation in identified areas. This includes greater customs and data-sharing cooperation, improved regulatory coordination in pharmaceuticals and agriculture, enhanced trade connectivity and stronger efforts to promote investment and business-to-business engagement.

The focus on pharmaceuticals and agriculture is significant, as both sectors offer opportunities to expand commercial exchanges while requiring closer coordination between regulatory authorities. Improved customs procedures and information sharing could also help reduce delays and make cross-border movement of goods more efficient.

The two sides also discussed measures to improve access for Afghan traders through visa facilitation and examined banking and financial cooperation, which could support smoother commercial transactions. Cargo connectivity and port-related issues were another important component of the discussions, highlighting the need for more efficient trade routes between the two countries.

India and Afghanistan reaffirmed their commitment to strengthening bilateral trade, commerce and investment ties and agreed to maintain continued engagement on the issues discussed.

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The latest engagement builds on broader economic discussions between the two countries. India and Afghanistan held their fourth Joint Committee meeting in New Delhi in July, where they reviewed cooperation covering trade, visa facilitation, connectivity, humanitarian assistance, development partnership, food security, healthcare, education and capacity building.

According to official trade data cited in recent reporting, India-Afghanistan trade reached $907.85 million in 2025-26, comprising Indian exports of $253.63 million and imports of $654.22 million.