Afghanistan-India Bilateral Trade Reaches USD 1 Billion In 2024-25: Indian Ministry Of Commerce And Industry

India and Afghanistan have continued to maintain strong trade relations despite regional challenges. During the financial year 2024–25 (April 1, 2024, to March 31, 2025), bilateral trade between the two countries reached a total value of USD 1.0087 billion.

According to data published by the Government of India, Ministry of Commerce and Industry (MoCI Trade Portal), imports from Afghanistan amounted to USD 689.81 million, showing a 7.4% increase over the previous financial year. Meanwhile, India's exports to Afghanistan stood at USD 318.91 million, indicating consistent commercial engagement.

India emerged as the largest importer of Afghanistan's goods during this fiscal year. This reflects the country's efforts in facilitating access to the Indian market, especially for Afghanistan's key agricultural and dry fruit exports.

This market access has had significant socio-economic impacts within Afghanistan. Afghan farmers, encouraged by the dependable Indian demand, are increasingly motivated to adopt alternative cropping strategies.

Furthermore, India continues to offer zero-tariff benefits on exports from Afghanistan. This exemption significantly reduces trade entry barriers, allowing greater participation of Afghan traders-especially small-scale farmers-in cross-border commerce and improving their access to the Indian market.

Access to the Indian market might motivate Afghanistan's farmers to adopt alternative cropping instead of opium cultivation. However, replacing opium requires quality inputs, fair markets, and financial support-none of which are sustainable without a broad-based and inclusive government in Afghanistan and continued regional and international assistance.

Currently, Afghanistan faces a worsening humanitarian crisis, intensified by mass refugee deportations from Pakistan and Iran, straining resources and hindering overall economic recovery and stability efforts.

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