Chabahar Emerges as New Economic Bridge Between Kabul-New Delhi

DID Press: Recent visits by Taliban officials to India have opened a new chapter in Afghanistan–India economic relations, shifting focus from overland trade routes via Pakistan toward leveraging the Iranian port of Chabahar Port and direct air links.

According to a report by Modern Diplomacy, the trips by Acting Foreign Minister Amir Khan Muttaqi and Acting Minister of Industry and Commerce Nooruddin Azizi mark a turning point in bilateral economic cooperation. During meetings with Indian officials as well as business and investment groups, they emphasized new opportunities for collaboration. Azizi identified sectors such as mining and information technology as having high potential for foreign investment. Current trade volume between Afghanistan and India is estimated at over US$1 billion.

In conjunction with the visits, India announced plans to upgrade its “technical mission” in Kabul to full embassy status. Other key decisions include resuming direct flights between Kabul–New Delhi and Amritsar–Kabul, appointing trade attachés, and establishing a joint Chamber of Commerce and Industry.

A centerpiece of the cooperation strategy is the use of Chabahar Port. Given the suspension of Afghan transit via Karachi, Kabul is pursuing alternative routes — with Iran’s Chabahar making strategic sense. India, which has managed the Shahid Beheshti terminal since 2018 and signed a 10-year development deal in 2024, has pledged roughly US$370 million in investments for the port.

Indian Prime Minister Narendra Modi reaffirmed at the 2025 Shanghai Cooperation Organisation summit that infrastructure projects like Chabahar and the North-South Transport Corridor will deepen regional connectivity.

Modern Diplomacy also noted that India has used Chabahar to send humanitarian aid to Afghanistan, including after the September 2025 earthquake. Still, the initiative faces uncertainties tied to ongoing tensions between Tehran and Washington — though India’s sanctions waiver was extended for six months in October 2025.

Overall, the analysis concludes that Chabahar — combined with restored air connectivity between Kabul and New Delhi — could become a cornerstone of renewed Afghan-Indian trade, providing a fresh route for economic cooperation and regional integration.