Afghanistan has approached India with an offer to reopen and develop its long-idle mining sites, hoping to draw investment and create jobs, but Indian industry leaders say the sector requires careful groundwork before any decisions can be made. After a meeting with an Afghan delegation, Associated Chambers of Commerce and Industry of India (ASSOCHAM) secretary general Manish Singhal said that Kabul “will be happy to offer those mines to Indian mining companies,” though he emphasized that mining remains “a bit more difficult” because companies must begin with time-consuming geological surveys, reported news agency ANI.Afghanistan holds more than 1,400 mineral fields containing resources such as barite, chromite, coal, copper, iron ore, gold, lithium, gemstones and natural gas. A joint Pentagon-US Geological Survey study once estimated Afghanistan’s untapped mineral wealth at around $1 trillion. According to ANI, Afghan representatives also discussed non-operational gold mines, noting that deposits remain unused owing to infrastructure gaps, limited expertise and past security concerns.Explaining Kabul’s interest in Indian private players, Singhal was quoted by ANI as saying that India could extract minerals for domestic use or re-export them, but stressed that the geological groundwork is essential before any commitments. The meeting took place during the visit of Afghanistan’s industry and commerce minister Alhaj Nooruddin Azizi, who arrived with a clear agenda to push economic cooperation and highlighted improvements in safety and mobility within Afghanistan.Trade formed a major part of the discussion. India currently handles about $1 billion in trade with Afghanistan, with 70 per cent of that comprising imports into India. Singhal said India could export far more, especially items Afghanistan currently buys elsewhere, including food products such as rice, small manufactured goods and pharmaceuticals. Kabul has also sought Indian help in local value addition, with Singhal citing requests for training in packaging nuts, saffron and hing.Azizi, meanwhile, used the ASSOCHAM session to pitch broader investment opportunities. He said Afghanistan is ready to offer five-year tax exemptions to firms investing in new sectors, including gold mining. He added that Indian companies importing machinery for such projects would face only a 1 per cent tariff. As per PTI, he said, “Gold mining will definitely require the technical and professional team… they can do the exploration initially, and then they can start work,” but added that processing must happen within Afghanistan to generate jobs.Azizi also flagged practical trade barriers and urged India to ease “minor hurdles” such as visas, banking channels and air connectivity, according to PTI. Smoother financial links between Indian and Afghan banks are essential, with Singhal noting the need to revive interbank relationships so traders do not face obstacles.Both sides expressed warmth about bilateral ties, with Singhal quoting Afghan representatives as saying they preferred trading with India due to the “strategic and warm relationship” the two countries share. Azizi’s six-day visit aims to strengthen that sentiment by securing trade, investment and industry partnerships.
