India has had a longstanding interest in the stability of Afghanistan, in no small part out of geopolitical necessity. In recent months, New Delhi has taken calculated measures to engage with the Taliban regime in Afghanistan to shore up its regional geostrategic interests, particularly as Pakistan, its nuclear-armed neighbor, has seen its star rise quite significantly on the international stage. Recent visits this past fall by Afghan Foreign Minister Amir Khan Muttaqi and Minister of Industry and Commerce Alhaj Nooruddin Azizi to India are an indication of the improving understanding between New Delhi and Kabul. This increase in bilateral engagement builds on the Narendra Modi government’s recognition that India’s continued economic assistance, goodwill activities, and capacity-building initiatives in Afghanistan and beyond can offer New Delhi an in-country soft power edge that few other regional players have.

Given Afghanistan’s dire need for economic assistance and financial support, India’s newfound closeness with the Taliban could be well-served by more deeply integrating Afghanistan into India’s prevailing infrastructure and road projects in and around Central Asia—namely through the expansion of the International North South Transport Corridor (INSTC).

Engagement Without Recognition

In the years since the U.S. withdrawal from Afghanistan and the rise of the Taliban, India has adopted a cautious approach of “pragmatic engagement” with the Taliban, without recognizing its legitimacy or endorsing its governance model. It has done so in part to maintain its presence and safeguard its substantial economic and infrastructural investments, which total about USD $3 billion across more than 500 projects across Afghanistan over the years. While the Taliban still carry a major trust deficit and political isolation around the world, New Delhi does not want to negate years of work, especially at a moment when its other key relationships in the neighborhood seem increasingly fragile.

To that end, the Modi government has in recent months welcomed the Afghan Foreign, Industry and Commerce, and Health Ministers, and upgraded the Technical Mission established in Kabul in 2022 to a full Embassy of India. Meanwhile, the Taliban Foreign and Industry Ministers have also invited Indian business groups to set up textile centers, mining operations, pharmaceutical hubs, and agriculture businesses in Afghanistan, offering assurances for the safety and security of Indians. Both countries have........

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