Afghanistan seeks Indian investments, goods as Taliban minister arrives in Delhi

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KABUL/NEW DELHI (Reuters) -Afghanistan’s Taliban trade minister arrived in India on Wednesday on a maiden visit to draw greater investments and goods as both countries consider ways to enhance their relations in the backdrop of souring relations with neighbouring Pakistan.

India last month upgraded its ties with the Taliban by reopening its embassy in Kabul that was shut after the Islamist group seized power in 2021 following the withdrawal of U.S.-led NATO forces. New Delhi is also ramping up its aid to the country as it competes with China for influence.

Minister Alhaj Nooruddin Azizi will hold talks with his Indian counterpart and the foreign minister, as well as with traders and investors, Afghanistan’s commerce ministry said in a statement.

“These meetings will focus on expanding economic cooperation, facilitating trade relations, creating joint investment opportunities, and strengthening Afghanistan’s role in regional transit routes,” it added.

Landlocked Afghanistan is seeking access to grains, medicines and industrial goods following the closure of its border with Pakistan in recent weeks after armed clashes last month between the neighbours killed dozens.

India operates the Iranian port of Chabahar with land links to Afghanistan and last month received a six-month sanctions waiver from the U.S. to continue its operations, reducing Kabul’s reliance on the Pakistani port of Karachi.

In the past six months, Afghanistan’s trade through Iran has reached $1.6 billion, higher than the $1.1 billion exchanged with Pakistan, Afghanistan’s commerce ministry told Reuters.

“Advancing bilateral trade and investment ties are the key focus of the visit,” Randhir Jaiswal, spokesperson for India’s foreign ministry, wrote on X along with a photograph of Azizi’s arrival in Delhi.

India and Afghanistan have historically had friendly ties, but not under the previous Taliban regime, and New Delhi does not recognise the present Taliban government.

Analysts say New Delhi and the Taliban are recalibrating their ties because of deteriorating relations with Pakistan as well as New Delhi’s concerns about China making inroads in Afghanistan.

(Reporting by Mohammad Yunus Yawar in Kabul and Shivam Patel in New Delhi, editing by Ed Osmond)