The Indian press has reported a decrease in the trade turnover between India and Afghanistan. This decline is attributed to border disputes and a ten-day blockade of the Torkham port.
Impact of Torkham Port Blockade
The blockade of the Torkham port has had a significant impact on the trade relations between Afghanistan and India. As a result, the price of Afghan goods in the Indian market has increased. The closure has forced importers to resort to importing Afghan commodities via Dubai, resulting in elevated prices for these goods in the Indian market.
Trade in Numbers
The trade between Afghanistan and India was substantial in 2022. India exported goods worth $662mn to Afghanistan, and imported goods worth $414.75mn from Afghanistan. However, the trade value for 2023 was reported to be $779mn, with $579mn in exports and $200mn in imports.
Trade Through Pakistani Port of Karachi
Officials of the Taliban Chamber of Commerce and Investment have stated that most of the trade between Afghanistan and India is carried out through the Pakistani port of Karachi. The trade between India and Afghanistan, which is worth more than a billion dollars, hangs in the balance.
Chabahar Port as an Alternative
With the creation of more facilities for traders at the port of Chabahar, it can become an alternative to the port of Karachi. Chabahar Port serves as a strategic gateway for India to access landlocked Afghanistan and Central Asian countries. It provides an alternative and more direct trade route to the region compared to traditional routes that pass through Pakistan.
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