Security is a major area of concern in Afghanistan after the slated withdrawal of NATO forces. According to many analysts, it may not be a total withdrawal as US intends to keep its footprints in Afghanistan. However, the situation would warrant greater involvement of regional forces as designed in the Istanbul process.

A historic Strategic Partnership was signed between India and Afghanistan during the last visit of President Hamid Karzai to India in October 2011.

Apart from reconstruction programme in Afghanistan, India is already involved in capacity building including training of Afghan National Security Forces on request from the Afghan Government.

It is likely Karzai may ask for greater Indian involvement alongwith other regional powers.

“We expect that during the visit (of President Karzai), apart from reviewing the entire gamut of bilateral relations there would be discussions on regional and international issues. We also expect that a few MoUs/agreements would be signed during the course of the visit,” said the Additional Secretary in the Indian Ministry of External Affairs, Yash K Sinha.

India’s interest is in direct connectivity with Afghanistan. It wants that the existing treaties like the Afghanistan-Pakistan Trade and Transit Agreement (APTTA) be extended to cover transit of goods from India to Afghanistan. But this has to be agreed upon by Pakistan, which is quite reluctant at this point of time.

Alternately, India has thought of developing and using Chahbahar port in Iran to gain access to Afghanistan.

India is a member in the Istanbul process which seeks to involve regional powers. India in fact is the lead country for two of the seven regional confidence-building measures, namely the Regional Chambers of Commerce CBM and the Commercial Opportunities CBM.

In the India-US strategic dialogue in June, this year in Washington it was decided to convene a trilateral dialogue between India, Afghanistan and the US. This trilateral dialogue took place in September on the margins of the UNGA in New York, and gave an opportunity to all three countries to discuss a variety of issues regarding the war-raged country and the region, and to see where the three countries could cooperate in trying to bring peace, stability and progress.

The implementing mechanism for the India-Afghanistan Strategic Partnership Agreement is the Partnership Council which is co-chaired by the Foreign Ministers of both the countries. The first session of the Partnership Council was held on May 1 this year in New Delhi. This was preceded by a Joint Working Group on political and security consultations, which is headed on the Indian side by the Foreign Secretary and on the Afghan side by the Deputy Foreign Minister. There are three other Joint Working Groups - on trade and economic cooperation, on development assistance, and on education, capacity building and culture which likely to meet shortly.

Karzai, therefore, is likely to seek greater participation from India in a number of issues.

Addressing a business summit jointly organized by three apex Indian industry bodies – CII, FICCI and Assocham – in Mumbai on Saturday, President Karzai said “Indian business need not be shy. We did like to invite you on a red carpet, but you need to arrive at the red carpet to take advantage of those opportunities.”

Cautioning about the strong and rising competition in Afghanistan, He said those who came in the past few years like a telecom company with $5 million investment has now become $600-700 million and this applies to other sectors as well.

“You need not worry about your investments. Not only will Afghan law protect you, but also Afghan people will add to your profits,” Karzai said assuring Indian industry of all help.

Appreciating India’s aid of $2 billion, despite not being a dollar economy, He said, “Afghanistan’s forex reserves including gold have risen to $7 billion now from $180 million in 2002.”

Karzai also spoke about the rich mineral resources in the country and said that already an Indian conglomerate is in talks for an iron ore mine and hoped a contract will be signed shortly.

Terming Karzai’s visit to India as home-coming since he had completed his post-graduation studies at Shimla, the Indian Commerce and Industry and Textiles Minister Anand Sharma said, “We can easily reach $1 billion (of trade) within next three years.”

The bilateral trade between the two countries was over $600 million last year, Sharma said.

Expressing India’s commitment to Afghanistan’s reconstruction and rehabilitation by being a true partner, he said, “Afghanistan has the potential to absorb much more than the committed $16 billion of global development assistance in this decade.”

Drawing a parallel between the Afghan and Indian economy and the need to grow at over 8%, Sharma said, “We have no choice or option, but an imperative dimension to create employment for 12 million new jobs.”

Ahead of Karzai’s visit India cleared $100 million aid for the third phase of the small developmental projects (SDPs) for Afghanistan as part of its commitment for a $2 billion aid programme.

The Union Cabinet meeting presided over by the Prime Minister Dr Manmohan Singh on last Thursday approved the third phase of the SDPs in Afghanistan.

The outlay on the third phase of the SDPs is $100 million (around Rs.500 crore).

According to the Cabinet note the SDPs directly impact local communities and support social-economic development, provide livelihood, help conserve environmental and cultural heritage, empower women, promote child welfare and facilitate community life through creation of infrastructure in the education, health, agriculture and agro-industry, renewable energy, trade, transport and communication, recreation and community development sectors.

Local communities of Afghanistan would directly benefit from the Small Development Projects. Exact number of beneficiaries cannot be verified. This will cover all 34 provinces of Afghanistan.

The Small Development Projects were earlier implemented in two phases: the first in July 2006 comprising 50 projects worth $ 11,216,179; and the second in June 2008 comprising 51 projects worth $ 8,579,537. Most of the projects in the two phases have been completed

The projects will be implemented over a period of four years through local Afghan Government bodies, community organizations, non-Governmental organizations, charitable trusts and education and vocational institutions. The expenditure on the projects will be met from the Non-Plan head of `Aid to Afghanistan’ budget of the Indian Ministry of External Affairs.