Indian government investments in Afghanistan after the Taliban takeover of the country have affected the commercial activities of Indian companies. A new problem arose between Afghanistan and India as the Indians were safely returned to India after various struggles.
Afghanistan has abruptly stopped exporting goods to India since the Taliban took over the country.
India Trade with Afghanistan
Over the years, the Indian government has made many investments, reduced taxes and trade agreements to increase trade with Afghanistan. One of the most important of these is the long-term agreement on the export of food products from Afghanistan.
Reduced import tariffs
Agreement to reduce import tariffs on apricots, fennel, figs, apricots, green grapes and blackcurrants exported from the country so that India and Afghanistan can derive maximum benefit .
Long term contract
Since this is a long term contract, more and more Indian traders are importing more and more food products from Afghanistan. The Taliban have now stopped exporting these food products.
Pakistan-Afghanistan route
Trade between India and Afghanistan was severely hampered by the closure of the Pakistan-Afghanistan route by the Taliban, who took control of Afghanistan.
Exports and imports
As a result, exporters and importers from both countries are not only looking for a new route, but also looking for new distributors.
Price increase
The prices of apricots, fennel, figs, apricots, green grapes and black grapes are expected to increase in the short term as this will increase costs and prices.
Afghanistan’s dominance
Although India imports apricots from countries such as Iran, Turkey and Pakistan, around 85% of dried apricots in FY2024 are imported from Afghanistan to India.
Figs, apricots
Similarly, 99% of Indian figs and 80% of apricots are imported from Afghanistan. In addition, pistachios, almonds and some spices are imported from Afghanistan.
Tajikistan and Uzbekistan
If you leave Afghanistan you have to import from Iran, otherwise you can import from Tajikistan and Uzbekistan. But there is no trade agreement with this country.
Deepavali Festival
As the situation is not yet fully known regarding upcoming orders, this situation should be rectified during the Deepavali Festival. Otherwise, food prices are expected to increase by at least 10 to 15 percent.
Surprise test for the Taliban .. Tragedy that the government cannot even touch the money ..!
Tensions are high across Afghanistan as the Taliban take control of the country.
Armed people are everywhere, military vehicles are constantly patrolling the streets, while people lead normal lives. Schools and colleges have started to operate in many parts of Afghanistan, but it seems certain that people are not leading normal lives.
In this situation, the Taliban, who have taken control of Afghanistan, cannot touch the country’s government, which is worth around $ 9 billion.
Value of Afghan currency
Investment in dollars has fallen sharply as the Taliban pushes to invest more in dollars as Afghanistan grows. As a result, the value of the Afghan currency has fallen to an all-time low.
Assets $ 9 billion
Bank of Afghanistan, the central bank of Afghanistan, manages approximately $ 9 billion in assets. Of that, $ 7 billion is in cash, gold, securities and other investments with the US Federal Reserve.
Just over 0.2%
$ 2 billion invested and the remaining assets are held by other central banks and Swiss banks. The central bank, Da Afghanistan Bank, holds only 0.2% or less of total assets.