Afghanistan can meet India’s demand for Minerals

Feb 17, 2023

"There is USD 3 billion worth untapped trade potential between India and Afghanistan. I suggest WTC Mumbai to set up a task force to realize this untapped trade potential. India can import coal of high calorific value (upto 12,000 kCal/Kg) at affordable cost from Afghanistan, instead of relying on distant countries such as Indonesia and Australia. Indian companies can export heavy machineries, textile, pharmaceuticals, chemicals and fertilizers, while Afghanistan can export high quality coal, precious & semi-precious stones, gems, copper and rare earth minerals,” said H. E. Mr. Farid Mamundzay, Ambassador, Embassy of the Islamic Republic of Afghanistan at an interactive meeting organized by World Trade Center Mumbai.

Speaking about the emerging business opportunities, His Excellency pointed out, “Indian mining companies can explore copper and rare earth reserves in Afghanistan jointly with partner companies in UAE or Saudi Arabia. these raw minerals can create huge employment opportunities in India in value addition and re-export operations. India can import high quality precious stones and gems from Afghanistan if Indian companies set up testing and certification facilities in Afghanistan.”

H. E. Mr. Mamundzay further added, “Afghanistan is strategically located as it shares land border with six Asian countries and hence it can be a gateway for India to the more than 1.7 billion South Asian and Central Asian market. Afghanistan can be a conduit for Indian exports of agriculture machineries, pharma, chemicals and other goods to Kazakhstan, Turkmenistan, Tajikistan and other Central Asian countries. Overall, there is USD 7 billion worth of untapped trade potential within South Asia and Central Asian countries.”

The Ambassador assured Indian businessmen about economic stability in Afghanistan by pointing out, “There is no security issue in Afghanistan as many Indian firms are operating in the country. The exchange rate of Afghanistan is stable and Indian traders can settle their transactions directly using banking channels as there is no US sanction on Afghan banks.” 

Earlier in his welcome remarks, Dr. Vijay Kalantri, Chairman, WTC Mumbai pointed out, ‘‘Both countries should work together to implement the long delayed India-Afghanistan-Iran transport corridor which can reduce transport cost for intra-regional trade within South and Central Asia. India’s power production will get a major boost if we import high calorific value coal from Afghanistan.”

Dr. Kalantri suggested that both the countries can exchange trade delegation to enhance trade volume, which has potential to double to USD 3 billion from USD 1.5 billion, which was the pre-pandemic high reached in FY20.

The meeting was also addressed by Ms. Zakia Wardak, Consul General, Consulate General of the Islamic Republic of Afghanistan in Mumbai; Mr. Qadir Shah, Counselor (Head – Trade Office), Embassy of the Islamic Republic of Afghanistan and Mr. Manpreet Singh, President, Indian Chamber of International Business

Ms. Rupa Naik, Executive Director, WTC Mumbai proposed vote of thanks for the event. 

In Photo (From left to right): Ms. Zakia Wardak, Consul General, Consulate General of the Islamic Republic of Afghanistan in Mumbai; Ms. Rupa Naik, Executive Director, WTC Mumbai; Dr. Vijay Kalantri, Chairman, WTC Mumbai; H. E. Mr. Farid Mamundzay, Ambassador, Embassy of the Islamic Republic of Afghanistan