India, Afghanistan set up trade panel, upgrade ties
New Delhi — India and Afghanistan have agreed to establish a joint trade committee and upgrade diplomatic engagement following a visit to New Delhi by Afghanistan’s acting Foreign Minister Amir Khan Muttaqi, according to multiple reports published this week.
The Sentinel reported that the visiting Afghan foreign minister said the two sides agreed to form a trade committee to bolster economic cooperation. The Express Tribune and PressTV separately said India and Afghanistan also agreed to upgrade diplomatic ties after the talks in New Delhi, signaling a measured step to deepen official channels following years of limited contact.
Trade committee to boost economic cooperation
According to The Sentinel, the new committee will serve as a mechanism to advance bilateral trade and address practical issues facing businesses, while creating a forum to identify new areas of cooperation. Details on the committee’s membership and schedule were not immediately disclosed, but both sides framed the decision as a move to revive commercial links.
India has remained one of Afghanistan’s significant economic partners over the past two decades, supporting infrastructure, human development, and humanitarian relief. The formation of a joint trade body marks a concrete step aimed at facilitating commerce and improving coordination on trade policy, customs, logistics, and private-sector engagement.
Diplomatic ties set for upgrade after New Delhi talks
PressTV reported that India and Afghanistan agreed to upgrade diplomatic ties after the talks led by Muttaqi in New Delhi. The Express Tribune described the development as an upgrade in ties, indicating an intention to expand formal interactions beyond existing channels. India has maintained a limited “technical” presence in Kabul since 2022 to coordinate humanitarian assistance, even as New Delhi has not formally recognized the Taliban administration.
While the precise contours of the upgraded engagement were not specified, the reported decision suggests both sides are seeking to institutionalize regular dialogue at higher levels and improve coordination on consular, economic, and development matters.
Who met, where and why it matters
Muttaqi, the acting foreign minister in the interim Afghan government, held discussions in New Delhi this week aimed at strengthening bilateral economic links and practical cooperation, the outlets reported. The talks focused on trade facilitation and diplomatic coordination, with the trade committee emerging as a key outcome.
India has longstanding strategic, cultural, and economic ties with Afghanistan. Since 2021, engagement has centered on humanitarian assistance, health, and education, delivered through multilateral and bilateral channels. A formal trade committee, coupled with upgraded diplomatic engagement, could help address obstacles faced by traders, improve connectivity planning, and provide a clearer framework for future cooperation.
Regional context and next steps
Afghanistan’s economy continues to face headwinds, and trade linkages with regional partners remain critical to access essential goods and support livelihoods. For India, a structured trade dialogue could help manage supply chains, facilitate humanitarian deliveries, and support private-sector participation where feasible under existing international frameworks.
Neither outlet provided a timetable for the first meeting of the joint trade committee or further diplomatic steps that may follow from the reported upgrade. Additional details are expected as both sides formalize the committee’s mandate and issue official readouts of the New Delhi discussions.
Background on India–Afghanistan engagement
India has been a major development partner for Afghanistan, backing projects in health, education, transportation, and governance over the past two decades. Since the change in Kabul in 2021, New Delhi has continued humanitarian support while keeping formal diplomatic recognition under review. The reported decisions in New Delhi this week indicate an effort to stabilize working ties and create predictable channels for dialogue focused on trade and practical cooperation.
As the joint trade committee begins its work, stakeholders in both countries will be watching for clarity on trade facilitation measures, banking and payments issues, and logistics routes—all areas where structured engagement could yield incremental gains. The anticipated upgrade of diplomatic interaction is likewise expected to make communication more consistent, aiding both humanitarian coordination and economic planning.
The Sentinel first reported the formation of the trade committee during the visiting foreign minister’s trip. The Express Tribune and PressTV reported that India and Afghanistan had agreed to upgrade their diplomatic ties following the New Delhi meetings.