In a significant development that signals a new phase of India-Afghanistan economic cooperation and a blow to Pakistan's regional trade influence, leading pharmaceutical companies from India and Afghanistan have signed a $100 million memorandum of understanding (MoU). The agreement comes just days after Taliban Minister for Industry and Commerce Alhaj Nooruddin Azizi concluded a high-profile visit to India seeking deeper trade and investment ties.
The MoU, signed in Dubai between Afghanistan's Rofi's International Group of Companies and India's Zydus Lifesciences, is being hailed as a landmark step in rebuilding Afghanistan's pharmaceutical capacity while expanding India's footprint in the country's healthcare sector. The signing ceremony took place at the Afghan Consulate in Dubai in the presence of the Afghan Ambassador and senior commercial officials.
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According to Afghanistan's Ministry of Industry and Commerce, Zydus Life sciences, one of India's major pharmaceutical manufacturers, will initially export medicines to Afghanistan. Over time, the company will relocate its representative office to Afghanistan and begin domestic drug production. Officials confirm that the transfer of technical data and know-how for local manufacturing has already begun.
"A Transformative Move..."
The Afghan Consulate described the agreement as a transformative move to improve healthcare standards, reduce dependence on substandard imported medicines, and significantly upgrade technical capabilities of Afghan pharmaceutical facilities. Afghan traders have publicly endorsed the deal as a model for future strategic partnerships.
This development comes at a critical geopolitical moment. The Taliban recently banned trade with Pakistan, directing Afghan firms to wind up pharmaceutical business ties with Pakistani suppliers within three months. The new India-Afghanistan pact is therefore widely viewed as a direct setback to Pakistan, which has traditionally acted as a key transit and trade hub for Afghan commerce.
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Earlier this week, Minister Azizi told NDTV that during his maiden India visit, he called for a dramatic expansion of bilateral trade, investment, and diplomatic engagement. Emphasising that Afghanistan is "open for business," he had assured full security guarantees for Indian companies and diplomats in Kabul.
The MoU worth $100 now stands as the first concrete outcome of that outreach, signalling Kabul's intent to diversify trade partnerships, deepen strategic ties with New Delhi, and reduce reliance on Pakistani trade channels.
