The geopolitical landscape of South Asia is witnessing a significant shift as Afghanistan actively seeks to diversify its trade routes, looking towards India via the strategic Chabahar Port. Afghanistan’s Minister of Industry and Commerce, Alhaj Nooruddin Azizi, recently affirmed Kabul’s commitment to advancing the Chabahar route with India to bolster trade and transit. This proactive stance, underscored by Azizi’s five-day visit to New Delhi culminating on November 23, 2025, signals a pivotal moment for regional economic cooperation. Amidst recent trade disruptions and border closures with Pakistan, Afghanistan is keenly focused on establishing reliable alternative options, and the Chabahar corridor is emerging as the cornerstone of this strategy.
The Imperative for Alternative Trade Pathways
The imperative for Afghanistan to find alternative trade pathways has never been clearer. Recurring border disputes and closures with Pakistan have severely impacted Afghan commerce, leading to significant economic uncertainty for the landlocked nation. During his recent visit, Azizi met with high-level Indian officials, including India’s Minister of State for Commerce, Jitin Prasada, and External Affairs Minister Subrahmanyam Jaishankar. These discussions emphasized expanding economic cooperation, facilitating trade, creating joint investment opportunities, and strengthening Afghanistan’s role in regional transit routes. The consensus was clear: both nations are determined to make the Chabahar corridor fully operational, with only minor technical challenges remaining. This shared vision aims to unlock Afghanistan’s economic potential and foster greater stability in the region, providing a much-needed bypass to traditional, often volatile, routes.
Concrete Proposals to Enhance Chabahar Utility
During his constructive visit, Alhaj Nooruddin Azizi put forward several concrete proposals to enhance the utility of Chabahar Port. He specifically urged India to initiate scheduled shipping services for Afghan exports through the port, which is already operated by India Ports Global Ltd. (IPGL). Furthermore, Azizi proposed that India assist in developing dry ports in Afghanistan’s southwestern Nimroz province, bordering Iran, which would streamline logistics for Afghan goods. He also sought India’s help in improving cargo handling at Nhava Sheva, India’s largest container port near Mumbai, to ensure smoother onward transit for Afghan shipments. These proposals demonstrate Afghanistan’s strategic commitment to integrating Chabahar into its long-term trade infrastructure, leveraging India’s expertise and investment. India, for its part, has already committed significant resources, including $120 million for infrastructure development and a $250 million credit line, reinforcing its dedication to the port’s success.
Evolving Trade Dynamics and Historical Ties
The push to bolster trade volume through Chabahar comes against a backdrop of evolving trade dynamics. While total trade between Afghanistan and India reached $779 million in 2023, a considerable portion still relied on Pakistan’s Karachi port. However, Afghan officials indicate that trade through Iran and Central Asian countries is increasing more rapidly, underscoring the strategic shift. Indian exports to Afghanistan experienced a decline from $662 million in 2021 to $333 million in 2024, highlighting the urgency to reactivate historical trade relations and restore trade volumes to pre-2021 levels (over $1.8 billion). To achieve this, India and Afghanistan have agreed to reactivate joint working groups, establish air cargo links, appoint trade attachés, and simplify customs procedures, fostering a more robust and direct trade relationship. The Taliban-led government’s announcement in late February 2024 of a $35 million investment in Chabahar Port further solidifies Afghanistan’s commitment.
Navigating Challenges: Sanctions and Infrastructure
Despite the immense potential, the full operationalization of the Chabahar route faces challenges, most notably the fluctuating impact of U.S. sanctions on Iran. While India has historically received sanctions waivers for its humanitarian operations in Afghanistan through Chabahar, these waivers introduce an element of uncertainty. Logistical and infrastructure gaps, particularly delays in completing crucial railway lines like the Chabahar-Zahedan, also need addressing to fully integrate the port with the broader International North-South Transport Corridor (INSTC). However, significant initiatives are underway to mitigate these issues. India and Iran signed a 10-year agreement in May 2024 for IPGL to operate the Shahid Beheshti terminal, providing long-term stability. Chabahar has already served as a critical humanitarian corridor, facilitating essential supplies from India to Afghanistan. The port’s role in offering India access to resource-rich Central Asian countries and diversifying trade routes to Russia and Europe highlights its strategic importance beyond just bilateral Afghanistan-India trade. Efforts are also being made to attract Indian companies and investors to build industries and services within the Chabahar Free Zone, fostering comprehensive economic development.
The renewed vigor in advancing the Chabahar route signifies a strategic pivot for Afghanistan and a deepening partnership with India. Alhaj Nooruddin Azizi‘s visit has not only reaffirmed Kabul’s dedication to this vital corridor but has also laid the groundwork for enhanced economic stability and regional connectivity. With India’s continued investment and operational support, and the recent extension of U.S. sanctions waivers, the Chabahar Port is poised to become a transformative artery for bilateral trade, helping Afghanistan bypass traditional bottlenecks and forge a more secure economic future. This initiative promises to reactivate historical ties and establish a robust, reliable trade gateway for the entire Central Asian region.
What are your thoughts on the future impact of the Chabahar route on regional trade and stability?
About the Author
