India, Afghanistan to intensify cooperation in economic sphere

NEW DELHI: India and Afghanistan have decided to intensify their cooperation, especially in the economic sector as they inked four pacts, including one on cooperation in development of coal and mineral resources and Indian aid for implementation of small development projects.
Indian Prime Minister Manmohan Singh held discussions with Afghan President Hamid Karzai, who is here to seek investments in his war-torn country, on the entire gamut of bilateral ties as well as challenges confronting the region.
“We also discussed changes in the security and political situation in and around Afghanistan. I expressed to President Karzai our belief that sustained international support and cooperation in all respects, including in combating terrorism emanating from the neighbourhood, will help Afghanistan meet these challenges,” Singh said at a joint media event.
Reaffirming the “shared vision of a stable, strong, united, sovereign and prosperous Afghanistan”, he said India remains committed to supporting Afghanistan in its development efforts and noted the country’s development assistance to Afghanistan currently stands at approximately USD 2 billion.
“We discussed the need to develop a strategic economic partnership, which will build on our economic synergies for mutual benefit. I also reiterated to President Karzai our belief that Afghanistan’s regional economic integration will contribute to overall prosperity and stability in the region,” Singh said.
Thanking India “for the generosity they have shown to us in the past many years”, Karzai said, “In particular India has been a very generous frontline partner and supporter to Afghanistan’s reconstruction and development. India has strived with us for the hard-earned income of its people and the difficult walk that we had for development and reconstruction.”
He also made it clear that this time he was here to woo investors. “My visit here this time is focused in talking to and asking and requesting Indian business to come to Afghanistan.
“Investment opportunities in Afghanistan today are better. A country that is more confident of its future and is willing to receive investments from its friends, specially from India. And I was happy to see today the signing of certain agreements and MoUs in this regard.”
‘Don’t shy away’
Earlier in Mumbai, Karzai told India Inc not to be “shy” when it comes to investing in his mineral-rich country and pointed out to them of the gains reaped by the Chinese who invested early in the war-ravaged country.
“Indian businesses need not be shy when thinking of Afghanistan. Chinese businesses were there long before you came, five or six years ago. And they have now taken two or three major contracts,” he said, addressing the captains of the industry here.
Karzai said his administration will do all things possible and accord special treatment to Indian investors.
“We would like to give you a better platform. We would like to welcome you on a red carpet and others on a grey carpet. But you need to arrive on the red carpet. If you don’t arrive on the red carpet, it will get dusty. Therefore, do hurry up in coming and take advantage of the opportunities in Afghanistan,” Karzai told the industry leaders.
He, however, reminded them that there is strong competition in his country.
“Competition is strong. You have now competition from the West arriving in Afghanistan,” said Karzai, who has been the head of government since 2001 following the US intervention and the ouster of the Taliban.
The meeting was organized under the aegis of CII, Ficci and Assocham and the participants included Adi Godrej of CII, Ficci’s R V Kanoria, Yes Bank managing director Rana Kapur among others.
China has been among the first to invest in Afghanistan and experts appreciate it as a good move given the geo-political importance of Afghanistan as a bridge between South and Central Asia.
Karzai said a lot has changed in Afghanistan over the past decade and also appreciated over USD 2 billion funding by New Delhi in rebuilding efforts, infrastructure development and capacity building.
The Afghan economy has recovered from having reserves of USD 180 million to over USD 7 billion now. The country’s per capita income has risen from USD 200 to USD 700, Karzai said.
He said those who invested early have reaped rich dividends and assured all help to Indian businesses.
“Those who came ahead are now multi-millionaires,” he said, citing the example of a telecom company which invested USD 5 million in 2002 and is now commanding a valuation of USD 700 million.
“Indeed, Afghanistan today is ripe and ready for Indian investments,” he said.
Referring to the Steel Authority of India-led consortium’s plans of mining in Afghanistan, Karzai said a conglomeration of Indian firms is in the final stages of investing and hoped the necessary contracts are signed soon.
Speaking at the event, Commerce Minister Anand Sharma said India is committed to the reconstruction and rehabilitation of Afghanistan.
India, which shares close bonds with Afghanistan dating back to centuries, is helping the country both as a friend and as a partner in its progress, Sharma said.
He specifically touched on the Chahbahar Port that New Delhi plans to help build in Iran, which will help evacuate Afghani cargo and also hoped for traction on the USD 7.6-billion, 1,040-mile-long Turkmenistan-Afghanistan-Pakistan-India (TAPI) natural gas pipeline, which will help address India’s energy security. -PTI