Indian industry to forge trade ties with Afghanistan

Thursday, 05 September 2002, 19:30 IST
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NEW DELHI: India Inc. is set to embark on a major drive to explore business opportunities in Afghanistan, as the international community maps the colossal economic effort that would go into restoring a nation ravaged by war. As part of the initiative, the Confederation of Indian Industry (CII), one of the country's premier business lobby groups, would be taking a high powered CEOs Mission to Kabul on September 26. The daylong CEOs Mission will coincide with the opening day of the four-day Made in India exhibition being organized by CII in Kabul. "The Made in India exhibition would be the first ever peacetime business and trade fair in Afghanistan," said an official of the international trade division in the Confederation of Indian Industry. "The fair will give Indian companies an opportunity to understand the market, build partnership and do business in Afghanistan," the official told IANS. Over 150 Indian companies including the Tatas, Hero Group, Godrej, Bajaj International, Escorts Ltd., TVS, Dabur, Kirloskar Electric, Usha International and Atlas Cycles are expected to participate in the exhibition. The companies will represent a wide spectrum of industrial sector, including agriculture, automobile and auto parts, construction equipment, consultancy, consumer durables, education and training, healthcare and information and communication technology. "Apart from general trade inquiries, we are hopeful that some initial joint venture partnerships would also be firmed up at the show," said the CII official, adding as the event draws closer more requests for tie-ups in diverse areas would be received. A large number of non-resident and resident Afghan businessmen, who are committed to the reconstruction process and are looking for business partnerships, are being invited to attend the Made in India show, he said. India has already committed a $100 million line of credit to undertake various infrastructure and other projects in Afghanistan in addition to gifting one million tonnes of wheat and other humanitarian assistance. Several Indian enterprises including Tata Engineering (heavy engineering machinery), Maruti Udyog Ltd. (automobiles), Kirloskar (pumps), Dabur (pharmaceuticals), B.K. Birla Group (infrastructure) and RITES Ltd. (railway infrastructure) have submitted proposals for projects in Afghanistan. CII had earlier organised an industry mission to Kabul in February. This was followed with a CII office in the Afghan capital the next month to forge closer business ties between India and Afghanistan. During the last decade, bilateral trade between the two countries has been largely restricted to the supply of essential commodities from India in exchange for primarily dry fruits. During 1989-90, the last year for which figures are available, India's exports to Afghanistan amounted to 914.8 million and comprised tea, wheat, tobacco, drugs and pharmaceuticals and engineering goods. Indian imports from Afghanistan during 1989-90 were worth 237.3 million and comprised fruit, dry fruits and oil seeds. New Delhi has assured Afghanistan of continued and enhanced cooperation in the fields of education, information and technology, public transport, by providing 50 buses and other vehicles, industry, energy and training of officials.
Source: IANS