Karzai to push for more Indian investment

INDIA: Afghan President Hamid Karzai in talks with Indian Prime Minister Manmohan Singh on Monday in New Delhi pressed for increased investment in his country.

India has provided billions of dollars of aid to Afghanistan since the fall of the Taliban in 2001, and is keen to protect against the return of a radical Islamist regime in Kabul after international troops pull out in 2014. But any Indian activity in Afghanistan triggers sensitivities in neighbouring arch-rival Pakistan, which fears losing influence in Afghanistan and being encircled.

In October last year, India and Afghanistan signed a “strategic partnership” aimed at deepening security and economic links, with Karzai keen to elevate India’s involvement further.

At a meeting on Saturday with business leaders in Mumbai, Karzai promised a “red carpet” welcome for Indian investment as US-led NATO forces prepare to withdraw.

“Indian businesses need not be shy while thinking about Afghanistan,” he said. “Chinese businesses were there long before you came, five or six years ago. “If you don’t arrive on the red carpet, it will get dusty. Therefore, do hurry up in coming and take advantage of the opportunities in Afghanistan.”

India has not contributed to the international coalition of forces deployed in Afghanistan, but has worked on low-key troop and police training as well as infrastructure development. The US was previously wary of India’s presence in case it led to a “proxy war” with Pakistan on Afghan territory, but US Defense Secretary Leon Panetta visiting New Delhi in June encouraged India to play a more active role.

AFP