Economic cooperation between India and Afghanistan has never been merely about numbers, trade volumes, or strategic corridors; at its heart, it has always been about people. In a country scarred by decades of conflict, where generations have grown up amid uncertainty, the promise of economic partnership carries a deeply human meaning. For India, engagement with Afghanistan has been guided by the belief that dignity, opportunity and self-reliance are as critical to peace as political agreements or security arrangements. For Afghans, India’s economic presence has often represented continuity, trust and a reminder that their aspirations have not been forgotten by the wider region.
For centuries, the lands that now form India and Afghanistan were connected through trade routes, scholarship and shared cultural spaces. Merchants, artisans and scholars moved freely across these regions, exchanging not only goods but ideas and traditions. This historical memory continues to shape modern cooperation, lending it a sense of familiarity that distinguishes India’s engagement from more transactional partnerships. When India began rebuilding its economic ties with Afghanistan after 2001, it was not starting from a blank slate but reviving an older relationship grounded in mutual respect and people-to-people connections.
In the years following the fall of the Taliban regime in 2001, Afghanistan faced the monumental task of reconstruction. Infrastructure lay in ruins, institutions were weak and livelihoods had been shattered. India emerged as one of the most consistent development partners during this period, committing resources not only to large infrastructure projects but also to initiatives that directly touched everyday lives. Roads, power lines, hospitals and schools funded or built with Indian assistance became symbols of renewal, but their deeper impact lay in the communities they served. A road was not just asphalt; it meant farmers could take their produce to markets, children could reach schools more easily and families could access healthcare without days of travel.
Economic cooperation also found expression in human capital development. Thousands of Afghan students received scholarships to study in Indian universities, many of them returning with skills in medicine, engineering, agriculture and public administration. These students carried back more than degrees; they returned with confidence, professional networks and a vision of what functioning institutions could look like. In classrooms and hostels across India, lifelong bonds were formed that transcended borders. For many Afghans, India became a second home and for Indians, these relationships personalized a country often reduced to headlines of war.
Healthcare cooperation offered another deeply human dimension. Indian doctors, nurses and medical teams worked in Afghan hospitals, while Afghan patients travelled to India for advanced treatment unavailable at home. The Indira Gandhi Children Hospital in Kabul, supported by India, became a lifeline for families who had few alternatives. Behind every statistic of medical aid were stories of children saved, mothers reassured and families given hope in moments of profound vulnerability.
Trade, too, played a critical role in empowering Afghan communities. India became a key market for Afghan agricultural products such as dry fruits, saffron and carpets, sectors that employ large numbers of people and preserve traditional skills. For Afghan farmers and artisans, access to Indian markets meant fairer prices and more stable demand. Each shipment of almonds or handwoven carpets carried with it the labour of countless families, turning economic exchange into a quiet but powerful form of solidarity.
The establishment of air freight corridors between India and Afghanistan was particularly transformative. By bypassing traditional land routes that were often disrupted by political tensions or insecurity, these corridors allowed Afghan producers to export perishable goods quickly and reliably. For a saffron farmer in Herat or a fruit grower in Kandahar, the air corridor meant their harvest could reach consumers in Indian cities while still fresh, increasing income and reducing waste. These initiatives demonstrated how thoughtful economic policies could have immediate, tangible benefits for ordinary people.
The return of the Taliban to power in 2021 introduced a new era of uncertainty, threatening to unravel years of progress. Diplomatic missions were closed, projects were halted and Afghanistan once again faced isolation. Yet even amid this upheaval, India’s approach to economic cooperation retained its human focus. Humanitarian assistance in the form of food grains, medicines and essential supplies continued, recognizing that political transitions should not punish civilians. For families struggling with food insecurity and unemployment, this assistance was not abstract diplomacy but a lifeline.
Gradually, India recalibrated its engagement, distinguishing between political recognition and humanitarian responsibility. Maintaining channels for economic and humanitarian cooperation became a way to prevent complete collapse and to preserve the gains made in education, health and livelihoods. This approach acknowledged a simple truth: sustainable peace cannot be built on empty stomachs or shattered economies. By supporting basic economic activity, India sought to empower Afghans to retain a degree of agency over their lives, even in difficult circumstances.
Connectivity projects have remained central to this vision of empowerment. The development of Iran’s Chabahar Port, supported by India, offered Afghanistan a crucial gateway to global markets. For a landlocked country, access to reliable trade routes is not merely a strategic concern but a determinant of everyday economic survival. Chabahar reduced dependence on volatile transit routes and opened new possibilities for Afghan traders, entrepreneurs and exporters. Each container passing through the port represented livelihoods sustained and futures made more secure.
Women’s economic participation, though severely constrained in recent years, has also been an important area where India’s cooperation has left a lasting imprint. Before 2021, Indian-supported training programmes helped Afghan women develop skills in handicrafts, entrepreneurship and education. These initiatives enabled women to contribute to household incomes and gain a measure of independence. Even as restrictions have tightened, the skills and confidence gained during those years continue to sustain many women-led informal enterprises, quietly resisting economic marginalization.
Small and medium enterprises, often overlooked in grand strategies, form the backbone of Afghanistan’s economy. India’s support for capacity building, vocational training and institutional development helped nurture this sector. Whether it was a small food processing unit, a carpentry workshop or a textile cooperative, these enterprises provided employment in communities where alternatives were scarce. Economic cooperation at this level fostered resilience, allowing families to weather shocks and reducing the lure of extremist groups that exploit poverty and despair.
Beyond bilateral ties, India’s economic engagement with Afghanistan has had a broader regional impact. By advocating for Afghanistan’s integration into regional trade networks, India has consistently argued that prosperity is a shared endeavour. Stability in Afghanistan reduces refugee pressures, curbs illicit economies and creates opportunities for cooperation across South and Central Asia. In this sense, empowering Afghan communities through economic cooperation serves not only Afghan interests but also the collective well-being of the region.
Critically, India’s approach has emphasized respect for Afghan ownership. Projects were often implemented in partnership with local institutions, ensuring that communities had a stake in their success. This emphasis on dignity and participation distinguished India’s engagement and fostered goodwill at the grassroots level. Many Afghans came to view India not as a distant power pursuing narrow interests, but as a partner invested in their everyday struggles and aspirations.
Challenges remain immense. Political instability, sanctions and governance constraints continue to limit the scope of economic cooperation. Human rights concerns, particularly regarding women and minorities, cast long shadows over future engagement. Yet the enduring lesson of India–Afghanistan economic ties is that even in the most difficult contexts, people centered cooperation can make a difference. Economic empowerment does not solve every problem, but it creates space for hope, resilience and dialogue.
As Afghanistan navigates an uncertain future, the role of economic cooperation in empowering communities will remain indispensable. Roads, schools, trade corridors and scholarships may appear modest against the scale of the country’s challenges, but their cumulative impact is profound. They restore a sense of normalcy, nurture talent, and reaffirm the belief that peace is possible. For India, continuing this engagement is not just a matter of foreign policy but a reflection of its civilizational ethos, one that sees prosperity and stability as shared responsibilities.
Ultimately, the story of economic cooperation between India and Afghanistan is a story of human connection. It is told in the classroom where an Afghan student studies in India, in the market where Afghan produce finds Indian buyers, in the hospital where lives are saved and in the workshop where an artisan sustains a family. These everyday acts of cooperation quietly challenge narratives of conflict and isolation, reminding both nations that empowering communities is the most enduring investment in peace.
