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India-Afghanistan trade likely to reach $2 bn by 2020: Afghan Ambassador

Press Trust of India  |  New Delhi 

The bilateral trade between and is expected to more than double to reach USD 2 billion by 2020 with the opening of air cargo route between the two countries.

"The bilateral trade between and is USD 900 million and with opening of air corridor our target to take it to USD 2 billion by 2020," to India, Sahida today said at an USAID-FICCI event.

India-Afghanistan have opened up two direct air cargo routes linking and to The Kabul-route was opened up last year.

Since starting of -air corridor in mid-June 2017 followed by second air corridor between Kabul-in December 2017 more than 100 Flights have been conducted between the two countries and transported 2,500 metric tonnes of goods.

"We want more and more flights but landing during night hours is not allowed. These are small issues which will be resolved over time as plans to establish air corridor connection with more Indian cities," of Afghanistan, Ajmal Ahmadi said.

He said that Afghanistan has opened up its power, pharmaceutical, and other sectors by allowing 100 per cent foreign direct investment where it is looking forward to significant participation from Indian firms.

"Afghanisatn still considers as the largest market for agriculture and During the last three years exported about 10,200 metric tonnes tonnes in volume to India. In last one year alone, it went up to 2,500 metric tonnes and this year we expect it to reach 5,000 metric tonne,"Ahmadi said.

He said that Afghanistan is going to make changes in existing rules for mineral sector in the country, which will boost the bilateral trade with India.

Abdali said that Indian and Afghanistan companies had last year signed business agreement worth USD 250 million during the same event held last year.

"Today about a USD 2 million deal has been signed between Indian and Afghanistan companies. We expect many more deals to be signed in next two days," Abdali said.

Indian firm and at the event signed deal to form a joint-venture firm with equal investments to sell around 2.5 tonnes of saffron during upcoming season of the crop, representatives of the two firm said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, July 13 2018. 19:25 IST