The Minister lamented that the track record of Indian investment in the least developed countries of the region was not positive. For instance, as against US$ 400 million total FDI into Afghanistan in 2006-07, India's share was a mere a $10 million. He, therefore, urged Indian companies to make pro-active investments for the development of the Afghan economy.
Mr. Jairam Ramesh however, expressed satisfaction that the total commitment of Indian investment for the reconstruction of the Afghan economy during the last five years was a whopping US$ 750 million, making India the fifth largest development partner of Afghanistan. The rate of disbursement of investment was even more encouraging at 37%.
This means that US$ 250 million worth of investment had actually been disbursed and as time progresses, given the political relations between the two countries, such development assistance would only increase, Mr. Jairam Ramesh pointed out.
Dr Amit Mitra expressed confidence that trade and investment linkages between India and Afghanistan would be further deepened and India-Afghan trade would rise from US$ 216 million in 2006-07 to $ 1 billion in the next five years.
He said the key constraints for bilateral economic cooperation were difficult law and order situation, limited trade basket between India and Afghanistan, lack of trade infrastructure, non-availability of skilled man power in Afghanistan. FICCI, he said, remained committed towork jointly with the Afghan business for improving this scenario.
Federation of Indian Chambers of Commerce and Industry
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