India enhances trade ties with Afghanistan

Trade between India and Afghanistan has grown over the years. Since the signing of an MOU between Indian Import Association and the Afghan Export agency, there has been a significant rise in bilateral trade between the two nations.

The Indian Importers Association enhances bilateral trade and helps Afghanistan to get reliable trade partners in India.

There have been traditional linkages between India and Afghanistan.

Total Indo-Afghan trade amounted to USD 683.02 million in 2013-14, with Indian exports accounting for USD 474.25 million and imports worth USD 208.77 million.

The Banking facilities are much better than earlier several products which were earlier not exported to India from Afghanistan they are now coming from Afghanistan.

The international market dynamics has changed in Afghanistan; it is reflected in the upgrade of packaging procedures. Products like fresh grapes are easily packed as per international standards and air freighted to India.

Imports from Afghanistan include dry fruits, fruits, lac and gum resin, which comprise 95 percent of total imports.

The gross domestic product In Afghanistan has increased to 6.40 percent in 2014.

"As the exports from Afghanistan to India have increased obviously the importers will benefit there and it will be a significant change in the GDP because the GDP contribution will increase from imports into India. Now exports from Afghanistan into India the GDP export percentage will increase. There is lot of products which can be still imported from Afghanistan which we the Indian Importers association is trying to find right partners so that these products can come in India", said Atul Kumar, President, Indian Importers Association.

India has offered support to Afghanistan in capacity building to enhance export and import facility.

"Trade will increase step by step especially from Afghanistan as India is one of the leading trading partners of Afghanistan and Indianexports will increase step by step and later on investment also go on. The only situation is that we have to see carefully the security environment after the Americans withdrawn the combined forces", said Atul Kumar, President, Indian Importers Association.

Indian traders are keen to invest in Afghanistan. However, they are skeptical due to the security challenges in that country.

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