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List of India’s investment loss in Afghanistan crisis due to Taliban.

Only a miracle can save

The Taliban’s return could mark the beginning of another dark day in Afghanistan. Afghanistan’s economic progress, along with its political and trade relations with the world, remains unknown. The billions of investment may become zero during the Afghanistan crisis.

Many countries have invested heavily in Afghanistan. India is one of them which has invested more than $3 billion in Afghanistan.

India with Afghanistan

India had helped Afghanistan in all aspects of nation-building over the past two decades when US-NATO forces provided a shield against the Taliban and other radical forces. 

India has made various investments in more than 400 infrastructure projects in all the provinces of Afghanistan. Literally, no one would have thought about the Afghanistan crisis coming this soon.

India’s Trade with Afghanistan

Currently, New Delhi and Kabul share strong economic and trade relations. Bilateral trade with Afghanistan is currently worth one billion dollars. 

Afghanistan is essential to India’s strategic interests in the region. However, the Taliban crisis has made India’s investments in Afghanistan uncertain.

Afghan exports are mainly fresh and dried fruit. Some of this comes overland through the Wagah border; Pakistan has permitted Afghan trade with India through its territory.

Indian exports to Afghanistan take place mainly through government-to-government contracts with Indian companies. Exports include pharmaceuticals, medical equipment, computers and related materials, cement, and sugar.

Two air corridors โ€” Kabul-Delhi and Herat-Delhi โ€” are in operation now. Trade through Chabahar started in 2017 but is restricted by the absence of connectivity from the port to the Afghan border.

India’s Project in Afghanistan

India signed a strategic partnership agreement committed to the reconstruction of Afghanistan in 2011. India has constructed rural roads, dams, schools and hospitals, various government buildings, power transmission lines and substations in Afghanistan.

The agreement also approved Indian support to help restore infrastructure and institutions, education and technical assistance for capacity building in several regions while encouraging investment in Afghanistan.

Under the agreement, Afghanistan also got duty free access to the Indian market. Afghanistan crisis has paralysed these projects and taking towards the death of projects.

1. The Afghan Parliament

India built the Afghan Parliament in Kabul at an estimated cost of $90 million. It became operational in 2015.

Prime Minister Narendra Modi inaugurated the building. Prime Minister Narendra Modi described the building as India’s tribute to democracy in Afghanistan.

Afghanistan Parliament Building
Afghanistan Parliament Building

2. Salma Dam

The hydroelectric and irrigation project, known as the Afghan-India Friendship Dam, was completed against many odds and inaugurated in 2016.

India’s high challenging project, the 42 MW Salma Dam, is situated in Herat province.

Salma Dam - (Afghan-India Friendship Dam)
Salma Dam – (Afghan-India Friendship Dam)

3. Zaranj-Delaram Highway

Border Roads Organization constructed the 218 km long Zaranj-Delaram Highway, another significant project. Zaranj is close to the Afghanistan border with Iran.

The $150-million highway goes along the Khash Rud River to Delaram to the northeast of Zaranj. It connects to a ring road that links Kandahar in the south, Ghazni and Kabul in the east, Mazar-i-Sharif in the north and Herat in the west.

Zaranj-Delaram Highway
Zaranj-Delaram Highway

Importance of Zaranj-Delaram Highway

With Pakistan denying India access to trade with Afghanistan, the highway is of strategic importance to New Delhi. It provides an alternative route into Afghanistan via Iran’s Chabahar port.

India has transported 75,000 tonnes of wheat to Afghanistan through the Chabahar port during the COVID-19 pandemic.

Over 300 Indian engineers and workers worked hard alongside Afghans to build the road. According to the Ministry of External Affairs, Government of India, 11 Indians and 129 Afghans lost their lives during the construction. Some from terrorist attacks while some from accidents.

India has also built many roads.

4. Stor Palace

Afghan President Ashraf Ghani and Prime Minister Narendra Modi inaugurated the renovated Stor Palace in Kabul in 2016. For official purposes, the Afghan Foreign Minister and the ministry uses the building until 1965.

In 2009, India, Afghanistan and the Aga Khan Development Network signed a tripartite agreement for its restoration. The Aga Khan Trust for Culture completed the project between 2013 and 2016.

Stor Palace Restoration.
Stor Palace Restoration. Credit – archnet.org

5. Power Infrastructure

Other Indian projects in Afghanistan include the rebuilding of power infrastructure.

Such as the 220kV DC transmission line from Pul-e-Khumri, capital of Baghlan province, north of Kabul to beef up electricity supply.

Indian contractors and workers also restored telecommunications infrastructure in several provinces.

6. Health Infrastructure

India helped build a Children’s hospital in Kabul in 1972 called the Indira Gandhi Institute of Children’s Health, again rebuilt in 1985. Indian Medical Missions have held free consultation camps in several areas.

Victims who lost their limbs after stepping on war landmines helped them fitted their limbs with the Jaipur Foot. An inexpensive, water-resistant and quick-fitting prosthesis.

India has also built clinics in the border provinces of Badakhshan, Balkh, Kandahar, Khost, Kunar, Nangarhar, Nimruz, Nooristan, Paktia and Paktika.

7. Transportation

India had gifted 400 buses and 200 minibuses to Afghanistan for public transport.

India also had gifted 105 utility vehicles to municipalities, 285 military vehicles to the Afghan army. Also gave ten ambulance vehicles in government hospitals in five cities.

Afghan national carrier Ariana had also received three Air India aircraft when it resumed its operations.

Other Projects

India has contributed desks and benches for schools and built solar panels in remote villages and public toilet blocks in Kabul.

India has also played a role in building capacity, with vocational training institutes, scholarships to Afghan students, mentoring programmes in the civil service, and training for doctors and others.

Ongoing Projects

India had an agreement with Afghanistan for the construction of the Shatoot Dam in the Kabul district, which would provide safe drinking water to 2 million residents.

India also announced the start of some 100 community development projects worth $80 million.

Conclusion

As the Taliban continues to rise in Afghanistan, it remains to be seen what the country’s outlook will be on India’s years of investment and aid. We can only hope for the best during the Afghanistan crisis.

Given the situation, it remains unclear how India will maintain diplomatic ties with a government controlled by the militant group.

The Taliban rule could disrupt India’s friendly ties with Afghanistan and subsequently its strategic investments in the war-torn country.

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