Reconstructing Afghanistan

Business opportunities for Indian companies

Indian companies and the government have been slow to utilise business opportunities abroad, especially those thrown up by economies in transition. So it will not be surprising if Indian companies once again miss the opportunity that post-war Afghanistan will represent. In Eastern Europe, in Central Asia, in Vietnam, Laos and Cambodia, in many African countries Indian companies, both in the public and private sectors, have been slow to act in grabbing business opportunities. Into this vacuum many Western and East Asian companies have stepped in. Unlike many of the economies in transition, Afghanistan is a country that many Indians should be familiar with. Moreover, there is a huge Afghan refugee population in India, many of them educated and talented and seeking employment. Indian companies in construction, communication, transportation, food processing and so on should be able to utilise this manpower and reach out for business opportunities that will be provided by the multi-billion dollar reconstruction effort that will soon begin. A factor that will work in India’s favour will be the willingness being shown by the United States government to seek Indian assistance in this regard.

India and the US are already cooperating at the political, military and intelligence levels in the war against Al Qaeda and Taliban and formation of a stable government in Kabul. The next logical step would be for the two countries, along with the other developed countries investing in Afghan reconstruction, to work with Indian personnel and companies. It is clear that such opportunities will present themselves. The question is are we ready to make use of them? We have been here before and found wanting. In Central Asia and south-east Asia, India has not been pro-active in the reconstruction and development business. Many opportunities have been wasted in the past for a variety of reasons ranging from sheer incompetence of company managements to governmental red tape and inter-ministerial turf battles. The rapid economic development of a new Afghanistan under a new national leadership that is not hostile to India is a national security issue for India. India and Afghanistan have been friendly countries for centuries and this bond of friendship should be renewed forthwith. The government has so far done well to extend humanitarian assistance and offer economic aid. The reconstruction programme being aided by developed countries will present opportunities for private business which should be made use of.