Major Investment Push from Afghanistan
In a significant move to attract foreign capital, the Taliban-led government of Afghanistan has rolled out a red carpet for Indian businesses, offering a substantial five-year tax exemption for investments in key sectors like gold mining. This announcement was made by Afghanistan's Commerce and Industry Minister, Alhaj Nooruddin Azizi, as he concluded his six-day official visit to New Delhi on Monday, November 25, 2025.
Key Outcomes of the High-Level Visit
Minister Azizi's trip, which included high-level meetings with India's External Affairs Minister Dr. S. Jaishankar and Minister of State for Commerce Jitin Prasada, yielded several concrete outcomes aimed at strengthening economic ties. A major development is the imminent appointment of a commercial attache from Afghanistan to India, expected to arrive within a month, to facilitate business interactions.
During a press conference at the Afghan embassy, Azizi expressed a strong will from both sides to enhance private investment. He identified a range of lucrative sectors for Indian companies, including:
- Mining, with a specific focus on gold
- Agriculture
- Health and Pharmaceuticals
- Information Technology
- Energy
- Textiles
To sweeten the deal, Azizi detailed the incentives. Companies investing in new sectors will receive a five-year tax exemption, along with tariff support and land allocation. He specified that for machinery imports related to these investments, Afghanistan would charge a minimal tariff of only 1 percent.
Focus on Gold Mining and Resolving Trade Hurdles
Highlighting the potential in gold mining, the minister invited Indian firms to send technical teams for research and exploration. He emphasized a key condition: the processing of mined resources should be done within Afghanistan to create local jobs.
Azizi also pointed out several minor hurdles that need to be resolved to unlock the full potential of bilateral trade, which currently stands at approximately $1 billion. These challenges include simplifying visa procedures, activating the air cargo corridor, and streamlining banking transactions.
Addressing one of these issues, Indian officials confirmed that the air freight corridor is set to become operational soon. Anand Prakash, Joint Secretary in the Ministry of External Affairs, announced, 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.
In a further step to institutionalize trade growth, Prakash stated that the joint working group on trade, commerce, and investment between India and Afghanistan will be reactivated. Both nations expressed optimism about significantly boosting their economic partnership beyond the current trade volume.
