Afghanistan’s FM Amir Khan Muttaqi invites Indian firms to explore mining opportunities as ties with New Delhi deepen

Afghanistan’s acting Foreign Minister Amir Khan Muttaqi has formally invited Indian companies to invest in Afghanistan’s mining sector, signalling Kabul’s intent to strengthen its commercial and diplomatic engagement with New Delhi. The invitation was extended during his high-level meeting with India’s External Affairs Minister S. Jaishankar in New Delhi.

During the discussions held at Hyderabad House, both sides reviewed cooperation in humanitarian aid, trade, connectivity, counter-terrorism, and regional stability. Minister Muttaqi highlighted Afghanistan’s vast mineral resources and urged Indian companies to participate in mining exploration and development projects. He assured that the Afghan government would provide all necessary support and security to investors.

Minister Jaishankar appreciated the invitation and reaffirmed India’s continued commitment to the people of Afghanistan through development and technical assistance. India has recently decided to upgrade its technical mission in Kabul to a full-fledged embassy, marking a significant step towards restoring full diplomatic engagement after the Taliban takeover in 2021.

Afghanistan is known to possess vast reserves of iron ore, lithium, copper, gold, and rare earth minerals—resources that are vital to the global clean energy transition. The Afghan government is keen to attract foreign investment to revive its war-torn economy, and India, with its strong mining and infrastructure expertise, is seen as a potential partner.

However, officials and experts caution that Indian companies will need to conduct comprehensive due diligence before investing, given the complex regulatory environment, security challenges, and international sanctions still applicable to several Taliban leaders.

India’s cautious approach reflects its balancing act—maintaining humanitarian and developmental engagement without formally recognising the Taliban regime. For Indian firms, any future participation in Afghanistan’s mining operations will require government clearance, legal vetting, and secure operational conditions.

The meeting also drew attention to the broader diplomatic context, as women journalists in Delhi raised concerns over exclusion from an Afghan-organised press event during Muttaqi’s visit. Despite such sensitivities, both countries reiterated their intent to deepen regional cooperation and economic engagement.

Key Takeaways:

• Afghanistan has invited Indian firms to explore investment opportunities in its mining sector.

• India is upgrading its mission in Kabul, signalling stronger engagement.

• Afghanistan’s vast mineral potential offers significant economic prospects but also poses security and legal risks.

• Future collaboration will depend on regulatory clearances, feasibility studies, and evolving regional dynamics.

This development marks a new chapter in India-Afghanistan relations, where economic cooperation could emerge as a key pillar of engagement in the coming years.