New Delhi. The increasing tension in relations between Afghanistan and Pakistan has had the biggest impact on trade. Pakistan sealed the border, the movement of trucks stopped and the traditional land route between India and Afghanistan was closed. Amidst this crisis, the Taliban administration has made a big announcement to make the air route connecting India increasingly cheap and convenient. Under the new arrangement, Afghanistan’s government airline Ariana Afghan Airlines has drastically reduced the Delhi-Kabul cargo rate, due to which the cost for both export and import has been reduced by more than half. This decision directly gives a new path to the trade of both the countries, especially when there is no direct connection through land.
The closure of Pakistan’s route had dealt a big blow to Afghanistan’s business community, but now Kabul has started preparations to make the air corridor the main trade channel. Afghanistan’s Economic Deputy Minister has given clear instructions to businesses to bypass Pakistan and adopt alternative routes to markets like India and Iran. This is the reason why cargo rates have been reduced to a record, giving priority to the Delhi route, so that the old trade volumes can be regained.
Huge decline in cargo rates
The new rates are applicable from 17 November 2025. Earlier, the cost of sending cargo from Delhi to Kabul or from Kabul to Delhi used to be up to $2 per kg, now it has been reduced to one dollar or even below.
- Delhi to Kabul: Now only $0.80 per kg
- Kabul to Delhi: New rate 1 dollar per kg
This simply means that Afghan fruits, dry fruits, saffron, carpets and other products will be able to reach India at a very low cost. At the same time, the Afghan market will once again open easily for Indian exporters.
Pakistan route closed, pressure on air route
For the last several years, Afghanistan used to send fruits and dry fruits to India mostly through Pakistan. But recent tensions and border closures have disrupted this system. Afghanistan depends on the land route to reach India, but that route completely depends on the wishes of Pakistan. Therefore, now the Taliban regime is looking at the air route as a permanent solution. This is the reason that along with reducing the rates, work is also going on on new flights and new routes.
Growing Afghan exports and India’s role
Official figures from Afghanistan show that the export value has increased to $274 million in September and October 2025. This is a stronger recovery than previous months. Instead of Türkiye, UAE and Pakistan, more focus is being seen on India and Iran. India has invested about $3 billion in Afghanistan, which also includes the development of Chabahar Port. New cargo flights and route expansion have also been planned in the recent Kabul-Delhi meetings.
What will India benefit from?
The demand for Afghan dry fruits, pomegranate, raisins and saffron in India is always strong. Earlier, due to closure of Pakistan route, prices in India used to increase, but now cheap air rates will bring stability in the supply chain. This is also a big opportunity for Indian exporters, because the Afghan market for construction materials, medicines, machinery and dry food items is very strong.
Growing trade relation between Afghanistan and India
- Afghan Foreign Minister Aamir Khan Muttaki supported making Chabahar Port the main gateway for India-Afghan trade and said that this would end dependence on Pakistan.
- India-Afghanistan launched a new air freight corridor, in which Amritsar-Kabul and Kandahar routes were also included along with Delhi-Kabul.
- Muttaki extended a formal invitation to Indian companies to invest in mineral-rich areas of Afghanistan like lithium and copper.
- Afghanistan appealed to India to simplify and speed up the visa process for businessmen and students.
- Both countries agreed to increase cooperation on hydroelectric projects including Salma Dam.
- Afghanistan asked India to increase support in the health sector, which includes 20 ambulances and other humanitarian aid.
- The 2003 preferential trade agreement was reviewed in 2025, bringing trade between the two countries to around $1 billion.
