Background

• India has shared long historical ties with Afghanistan. India was one of the non-communist countries to accept the legitimacy of the Communist government in the country. 
• After its downfall, India continued to extend its support to the successive governments until the Taliban came into power in 1996. 
• With the downfall of the Taliban and the establishment of the international government in 2001, India restarted its ties with Afghanistan. 
• India’s model of development cooperation follows a demand-driven ‘soft power’ approach where assistance is provided as per the needs and requests of the Afghan Government. 
• In 2017, India was amongst the top ten international donor countries with assistance worth USD 30.45 million.
• The bilateral trade between the two countries received a significant boost with the Bilateral Trade Agreement signed in 2003.
• The total bilateral trade in 2017-18 was valued at USD 1.14 billion, with exports amounting to USD 709.75 million and imports amounting to USD 433.78 million. 
• The developmental and humanitarian assistance received a setback with the coming back of the Taliban in 2021 following the withdrawal of US troops. 
• India has maintained a low key and minimal relations with the Taliban led Afghanistan from that period. 
• In January 2025, Foreign Secretary level meeting took place in Dubai, United Arab Emirates taking the relationship to a higher level.

Significance of  this Relationship

• Strategic and Security Interests: A stable Afghanistan is crucial for India’s regional security. Instability can lead to increased terrorism and extremist activities that may impact India, especially in Jammu and Kashmir.
• Connectivity and Trade: Afghanistan serves as a gateway to Central Asia. India has invested in projects like the Chabahar Port in Iran and the Zaranj-Delaram Highway to enhance trade and connectivity, bypassing Pakistan.
• Geopolitical Influence: Strong ties with Afghanistan helps India counter Pakistan’s influence in the region. Pakistan was once a strong supporter of the Taliban regime in Afghanistan. 
  • The relations have soured recently due to Pakistan’s attacks within Afghan territories, sending back Afghan refugees and border demarcation conflicts along the Durand Line.
  • Afghanistan has historically refused to recognize the Durand Line as a legitimate border, claiming that it was imposed under British pressure.
• Development and Soft Power Diplomacy: India has played a major role in Afghanistan’s reconstruction through investments in infrastructure, education, healthcare, and humanitarian aid, gaining goodwill among Afghans.
  • India has helped in construction of many High Impact Community Development projects which give tangible benefits to common Afghan people.
  • India has also built projects like the Salma Dam, Parliament building and Indira Gandhi Children Hospital.
• Energy and Resource Interests: Afghanistan has a rich resource base of minerals like iron, copper, zinc, and sulphur., and deeper engagement can help India access these resources while also strengthening energy cooperation in the region.

Challenges in this Relationship

• Uncertain Diplomatic Engagement: India has not officially recognized the Taliban regime, making formal diplomatic ties difficult. India has reopened its embassy in Kabul with a technical team and increased cooperation to a higher level but engagement still remains limited.
• Security Concerns & Terrorism: India is concerned about terrorist groups operating from Afghan soil, such as Lashkar-e-Taiba (LeT) and Jaish-e-Mohammed (JeM), which have links to the Taliban and Pakistan’s ISI. There are fears of Afghanistan becoming a hub for anti-India activities.
• Humanitarian & Economic Assistance: India has been a major donor to Afghanistan, investing in infrastructure, education, and healthcare. However, delivering aid effectively under Taliban rule is difficult due to restrictions, lack of oversight, and concerns about misuse.
• Chinese Influence: China is working fast to fill the vacuum left behind by the US, Europe, the West and India. In September 2023, China sent its ambassador to Kabul and in early 2024, Beijing received a Taliban representative as its ambassador.
  • Beijing may also take steps for the development of Afghanistan’s natural resources as part of its Belt and Road initiative.
  • In Kabul, a large-scale urban development project to build homes and parks is going on with China’s support.
• Rights & Stability Issues: The Taliban’s policies on women’s rights, governance, and minority treatment contradict India’s democratic values. Engaging with Afghanistan without legitimizing human rights violations remains a challenge for India.

Way Forward

• India’s main concern in Afghanistan has been that terrorism should not flourish in Afghanistan, and by all estimates, the security situation has improved.
• The Taliban have so far ensured security guarantee for Indian interests and facilities, including the embassy premises. 
• India should enhance its humanitarian assistance and resume development projects in Afghanistan, keeping in mind the complex geopolitical situation in the region.