Afghanistan woos Indian investors with tax sops, reopens air cargo route

New Delhi: Afghanistan's commerce and industry minister Alhaj Nooruddin Azizi on Friday invited investors and industrialists from India to invest in his country, highlighting opportunities in mining, agriculture, pharmaceuticals, health and energy.

At an event organised by the PHD Chamber of Commerce and Industry here, he said Afghanistan is giving preferential tariffs on machinery and raw materials. The minister also stated that the Taliban regime is considering granting a five-year tax exemption to those planning to set shop in Afghanistan. "There's a huge opportunity for investments in Afghanistan across sectors such as mining, agriculture, health and IT. We have created an enabling environment for traders, and we will fully support the investors," said Azizi.

At the same event, Anand Prakash, joint secretary at India's external affairs ministry, said air cargo services between India and Afghanistan will commence soon. "I am pleased to announce that the air freight corridor on the Kabul-Delhi sector and Kabul-Amritsar routes have been activated and cargo flights on these sectors will commence very soon," he said. "This will significantly enhance their connectivity and further strengthen our trade and commercial ties," he said, adding that both sides have agreed to depute a trade attache in each other's embassy to oversee and support bilateral trade cooperation.


The joint working group on trade, commerce and investment will also be reactivated to explore opportunities to expand trade, added Prakash.

Afghanistan produces half a million tonnes of cotton, and the Indian textile industry can invest in developing cotton processing capabilities and also in exporting from that country, Azizi said.

The minister also urged two Indian companies that have stopped investing in the energy sector in Afghanistan to return and resume investing, with the government providing an enabling environment for them. He did not name the companies.