Sameer Rasa, the Head of the Public Relations Office of the Senior Advisor to the President in Banking and Finance on Monday said at a press conference that the 2nd annual India-Afghanistan International Trade and Investment Show in Mumbai had been a great success.

The expo, which ended on Sunday, proved to be of great value to investors and traders.

Rasa said over 400 contracts were signed which would result in a sharp increase in trade volume between the two countries in the next two years.

“The 2nd Afghanistan-India trade show was a great opportunity for investors; 400 contracts were signed in dry fruits, miningenergy, health, IT and services sector,” Rasa said, adding that the “the current bilateral trade volume between Afghanistanand India is $900 million and this is expected to reach $2 billion by 2020.”

He also said an important summit was being held in London on Monday in an effort to boost trade between Afghanistan and the UK.

He said that the government is planning to include Balkh and other provinces in future air freight corridor plans.

Rasa said since the launch of Afghanistan’s air corridors, 169 flights have been logged from Kabul and Kandahar airports to Mumbai, Delhi, Almaty, Istanbul and Jeddah. As a result 2,751 tons of goods including fruit, dry fruits, and handmade rugs were exported at a total value of $56m.

He added that on Monday, the High Economic Council approved a policy on industrial parks. 

“There are three types of models in this policy: state-owned, private, and collaborative industrial parks,” he said adding land for 13 industrial parks in 11 provinces is ready for distribution.

At the Mumbai event, members of the private sector from Afghanistan, India and other countries signed up to 400 memorandums of understanding (MoU) and five contracts with Afghanistan.

Among the MoUs is an agreement between Afghan and Indian companies on the establishment of a large pharmacy and an agreement on the expansion of import and exports with Indian transport companies.

“About 400 MoUs in the last two days! Over $115 million in carpet deals,” said Loren Stoddard, head of economic development at USAID office in Kabul, as he talked to a gathering of Afghan and foreign investors in India. 

Kam Air officials meanwhile said their cargo flights will carry more goods to India as agreed at the event. 

“Our daily flights will be from Kabul to Delhi and from Delhi it can be transferred to different parts of India and abroad. At the beginning, we will transport 25 tons of cargo every day which will be exported abroad and then this amount can be increased,” said Ramin Yuresh, head of business affairs of Kam Air.

Meanwhile, an MoU was signed between Afghan Chamber of Mines and Industries, Afghan-American Joint Chamber of Commerce and Industries of Gujrat.

Some Afghan investors who attended the event said they have seen an improvement in the country’s manufacturing sector. 

The exhibition was inaugurated by CEO Abdullah Abdullah, John Bass, US Ambassador to Afghanistan, Subhash Desai, India’s Minister for Industries and Mining and other officials on September 12. 

On the sidelines of the trade show, Afghan and foreign experts discussed ways to increase Afghanistan’s trade relations with India and beyond, including with Australia and Indonesia. 

The officials discussed the opening of sea routes and air corridors between the countries in order to expand trade and transit relations.

Ahmadi said the National Unity Government is working on establishing transit corridors through India, Indonesia, Turkey and China to Australia. He said India can play a crucial role in this regard.

The first such trade show was organized in New Delhi last year. Indian buyers and Afghan vendors signed over $27 million in contracts for raw and processed agricultural products, and a number of Indian buyers and Afghan vendors signed Memorandums of Understanding valued at nearly $214 million at that expo.

This time around, more than 600 representatives from Afghanistan, India and international businesses attended the trade show, featuring Afghanistan’s finest products.

In July, a two-day trade mission exhibition 'Made in Afghanistan: Nature's Best’ was held in New Delhi and business deals worth $78 million were signed, the Afghan Chamber of Commerce and Industry said in a statement last week.

By 2020, bilateral trade between India and Afghanistan was expected to reach more than $2 billion. The expo would help develop economic ties between Afghanistan and international markets, and further advance trade integration, according to reports.