Editor in Chief: Moh. Reza Huwaida Friday, March 29th, 2024

Afghanistan Seeks Greater Indian Investments

Afghanistan Seeks Greater  Indian Investments

KABUL - Seeking enhanced economic engagement with India, war-ravaged Afghanistan on Wednesday asked the Indian industrial houses to invest in sectors like mining and manufacturing and construction activities. Speaking at the CII organized Indian Global Summit on MSMEs 2011 here, visiting Afghanistan Trade and Industry Minister, Anwar Ul Haq Ahady said there are huge opportunities for Indian small and medium enterprises (SMEs) in the South Asian country. "We are eager to attract Indian investments and form closer trade links with India. Afghanistan is a virgin market, you will make good money here," Mr. Ahady said.

He said that Indian SMEs can explore areas like plastics, poultry, packaging, food processing and preserving agri-products. The bilateral trade between the two stood at $557.81 million in 2010-11.

To enhance the bilateral trade further Mr. Ahady said the trade between the two must be routed through Wagah border instead of Karachi, which is costly. "We hope that this Transit Agreement, which we have signed with Pakistan, will enable India to export goods through Wagah,'' he added.

He said that the Afghanistan is still a land of opportunity for entrepreneurs, even when we take into account the high level of risk, return on investment is much greater there than in most others parts of the world. "Afghanistan has had the misfortune of several decades of war, leading to the displacement of numerous citizens, disruption to studies and an erosion of trade skills," he remarked.

He said Afghanistan's economy grew by 10 per cent annually — all through 2005 and 2010. "Based on the experiences of those who have invested in Afghanistan in the past 10 years, I can assure you the return on your investment will be abnormally high," he said.

India was importing 75 tons of Afghan apples per week at the peak of the season last year. Mr. Ahady acknowledged India's role in the economic development of his country. The Indian Government has funded the construction of a hydro-electric plant in Herat province which will make a significant contribution to economic growth in western Afghanistan, he said.

Despite the war related risks, the country has won endorsement from the World Bank when it comes to setting up new businesses. "We rank 25 out of 183 countries surveyed by the World Bank for establishing a business," he said. (Agencies)