The Federation of Indian Export Organization signed a Memorandum of Association with Afghanistan in June 2014 keeping in view the improving bilateral relations between India and Afghanistan.
The memorandum of Understanding emphasized on exchange of information related to trade, technical transfer, and economic cooperation between India and Afghanistan.
The Bilateral trade between India and Afghanistan varied between USD 580 and 650 million USD in last four years. India's exports to Afghanistan amounted to USD 474 million in 2013-14, showing a growth of 0.5 percent, while imports touched USD 208 million, showing an increase to 30 percent.
Exports were reduced due to the political instability in Afghanistan. Imports from Afghanistan include dry fruits, fruits, lac and gum resin, which comprises 95 percent of total imports
The MOU is caters to the merchandise, service and investment sector.
"What we have observed in Afghanistan in particular is that, Afghanistan requires India's help not only confined to trade but also for investment. We are seeing the opportunities coming in the field of education if Indian institute can set up their base and look for providing with basic and higher and secondary education to them it will benefit the whole population", said, Ajay Sahai, DIRECTOR GENERAL AND CEO (FIEO)
Trade is one of the most important mediums through which India can uplift Afghanistan's growth in all segments.
"I think if you look at India and Afghanistan trade for last 4-5 years our export service stagnated to $ 450 million USD in fact 5 years back our export for $465 million USD it is close to $500 million USD. On the contrary, imports have been increased from $125 million USD to $205 million USD but these figures tell the potential of both the sides I am not looking for less than a billion USD with our neighbour in fact given an opportunity we would like to import as much as possible and we will try to balance what we import from Afghanistan so I think in a short span of 3 years time we should look at the bilateral trade of order around $2.00 billion USD which is close to what we kept offer now but now I am sure we have that potential to increase that further as well", said, Ajay Sahai, Director General and CEO (FIEO)
India wants to actively cooperate in improving Afghanistan's infrastructure.
"We all were actively waiting for an elected government in Afghanistan and now a new government has come and I am sure once the political stability in the country is available it will attract more trade and investment", said, Ajay Sahai, DIRECTOR GENERAL AND CEO (FIEO)
Since the fall of Taliban regime in 2001, India has been helping Afghanistan reconstruct its infrastructure.
