Afghanistan crisis: Taliban stops import, export from India through Pakistan

The Federation of Indian Export Organisation has informed that the taliban rebels, after their recent takeover in Afghanistan, have stopped all the imports and exports from India through the transit routes of Pakistan

The Director-General of the Federation of Indian Export Organisation (FIEO) Ajay Sahai said that the terror group has stopped the movement of cargo through transit routes of Pakistan, thereby stopping the imports from Afghanistan.

Imports from the country come through the transit routes of Pakistan and as of now, Taliban has stopped the movement of cargo to Pakistan, so virtually imports have also been stopped.

He further added that as far as exports are concerned, some of the goods have been exported through the international north-south corridor route which is going fine now. While some other goods go through the Dubai route which is also working fine.

India-Afghanistan trade relations:

•  India has long-standing relations with Afghanistan, particularly in trade, and also has larger investments in the country.

•  India is one of the largest partners of Afghanistan and its exports to Afghanistan are worth around USD 835 million for 2021. India has also imported goods from the country worth around USD 510 million.

•  Besides trade, India also has a sizeable investment in Afghanistan. The country has investments of around USD 3 billion, as well as there, are 400 odd projects of India in Afghanistan, some of which are currently going on.

•  In trade, both India and Afghanistan enjoy healthy relations. Currently, the Indian export profile includes pharmaceuticals, sugar, tea, apparel, coffee, transmission tower, and spices.

•  Imports have been largely dependent on dry fruits. India also imports little gum and onions from them.

Background:

The latest development in the trade relations between India and Afghanistan has come in the wake of a new militant regime that has taken over the country. As Taliban takes over the political power in Afghanistan and establishes its own rules and laws, it will be interesting to see how the new economic and social dynamics of Afghanistan will fit with the other countries.