Also India has decided to launch the third phase of Small Development Projects (SDPs) in Afghanistan which would address the socio-economic needs of the people at the grassroots level, apart from continuing its reconstruction and institution-building activities. The SDPs would be implemented through local government bodies, community organizations, charitable trusts and educational and vocational institutions. The Indian Government has already cleared $100 million aid for the third phase of the SDPs as part of its commitment for a $2 billion aid programme.

“We also discussed the changes in the security and political situation in and around Afghanistan. I expressed to President Karzai our belief that sustained international support and cooperation in all respects, including in combating terrorism emanating from the neighbourhood, will help Afghanistan meet these challenges. President Karzai’s own enlightened leadership will play a big part in this effort, “said the Indian Prime Minister Dr Manmohan Singh after the delegation level talks between the visiting Afghan President Hamid Karzai here on Monday.

India is already engaged in training Afghan National Security Forces.

India and Afghanistan signed a MoU relating to India’s grant assistance for the third phase of SDPs

Other two MoUs signed for cooperation in fertilizer and development of coal mineral resources would largely boost Indian investment in Afghanistan and meet India’s need for these two crucial commodities through buyback arrangements. A MoU for cooperation in youth affairs was also signed between the two countries.

Dr Singh also said that India would intensify its cooperation “in areas ranging from agriculture and small businesses to mining and infrastructure.”

“We had detailed and frank discussions today covering the entire spectrum of our bilateral relations, as well as the challenges confronting the region. We reaffirmed our shared vision of a stable, strong, united, sovereign and prosperous Afghanistan. We reviewed progress in the implementation of the Strategic Partnership Agreement during the past year and reaffirmed our commitment to deepen our cooperation in accordance with the vision outlined in the Agreement,” Dr Singh said.

President Karzai described India as “a generous and frontline partner” which stood behind “in difficult work we had.” He said that that his objective was to woo Indian investments into Afghanistan. Indian investors should not be shy. They should compete with investors from China and Pakistan. China and Pakistan had taken the early opportunity to investment in Afghanistan

He urged for taking up the issue with Pakistan for giving access to Indian goods to pass through its territory to Afghanistan.