FIGS(US:FIGS) The Economic Times·2025-12-07 02:16Core Insights - New Delhi is strategically improving ties with the Taliban, which is expected to benefit Afghan traders in India, despite many Afghans' disdain for the Taliban regime [2][5][24] - The diplomatic engagement has been marked by the establishment of an air-freight corridor and the upgrading of India's mission in Kabul to a full-fledged embassy [6][14] - Trade between India and Afghanistan remains resilient, with a significant increase in imports from Afghanistan, particularly in dried fruits and spices [14][26] Trade Dynamics - India's exports to Afghanistan decreased from $554 million in FY22 to $319 million in FY25, while imports surged by 35% from $511 million to $690 million [14][26] - The import basket is led by figs, hing, raisins, and apples, reflecting a deep culinary connection between the two nations [15][26] - Afghan traders in India continue to thrive, utilizing air transport for goods, with Ariana Afghan Airlines recently reducing freight charges to $1 per kg for exports [22][26] Diplomatic Landscape - The relationship between India and the Taliban is evolving, with India cautiously building ties since the Taliban's takeover in 2021 [10][11] - Former Indian officials emphasize the importance of maintaining operational ties with the Taliban while nurturing people-to-people connections [8][11] - Regional developments, including Pakistan's deteriorating relationship with Kabul, have influenced India's diplomatic strategy [9][17] Market Challenges - The closure of land routes between Afghanistan and India has forced trade to reroute through Iran's Chabahar port, complicating logistics for Afghan traders [18][26] - Despite these challenges, Afghan apples and other goods continue to reach Indian markets, albeit at higher prices due to transportation costs [19][26] - Afghan traders in India, known as Kabuliwallahs, prioritize business opportunities over political affiliations, focusing on trade and maintaining connections [23][24]