Afghanistan Invites Indian Investors, Promises Tax Exemptions and Land for New Projects

Afghanistan’s Industry and Commerce Minister Alhaj Nooruddin Azizi, addressing an interactive session organised by Assocham on Monday, said the country is opening its doors wide to Indian businesses across mining, manufacturing, and other emerging sectors.

“There is huge potential available in Afghanistan. You will not find many competitors.
You will receive tariff support, land, and a five-year tax exemption,”
Azizi said, urging Indian firms to explore opportunities that remain largely untapped.

1% Tariff for Machinery Imports, Land Support for Investors

In a bid to reduce entry barriers, Azizi announced that Afghanistan will charge only 1% tariff on machinery imported from India for investment purposes.

He highlighted gold mining as a priority sector, stressing that Kabul is looking for technically strong, professional teams to conduct early-stage exploration and feasibility assessments.

“Gold mining requires technical expertise. We invite Indian companies to send their teams for research and exploration,”
he said, adding that Afghanistan expects the processing of extracted gold to happen within the country to ensure job creation for locals.

Tensions With Pakistan Hurting Trade

Azizi acknowledged that Pakistan-related disruptions continue to impede smooth trade flows for Afghan businesses.

“Tensions with Pakistan are creating hurdles in trade,”
he said, hinting that Afghanistan seeks alternative, reliable partners—India being a top priority.

Calls for Removing ‘Minor Hurdles’ in India-Afghanistan Trade

The Afghan minister urged Indian authorities to streamline certain administrative issues that are slowing down bilateral trade, including:

• Visa processing
• Air corridor access
• Banking and financial transactions

He said resolving these “minor hurdles” could significantly boost trade and accelerate investments at a time when Afghanistan is keen on rebuilding economic confidence.

“We want to build the relationship between India and Afghanistan… these issues must be sorted to improve bilateral trade,”
Azizi noted, speaking in the presence of Indian government officials.

A Six-Day Visit Focused on Economic Revival

Azizi is currently on a six-day visit to India, where he is scheduled to meet business leaders, industry stakeholders, and government officials to push for deeper economic cooperation.

With Afghanistan positioning itself as a resource-rich destination with low competition and attractive tax structures, Indian investors—especially those in mining, engineering, and infrastructure—are evaluating whether this could become the next frontier for strategic expansion.