India will help develop the textile industry of Afghanistan. A MoU has been signed to focus on expansion of business and cooperation in the field of textiles, clothing, cotton, man-made fiber and handlooms. India will assist in skill development, research and development, technical collaboration in product development and manufacturing, testing and certification and organize joint trade missions for mutual collaboration.

Afghanistan has a huge potential for development of the textile industry since the country is endowed with rich quality of cotton, silk and cashmere and this sector is a good source for jobs and employment. India has been one of the main donors to Afghanistan contributing over $2 billion in reconstruction projects in the country following the fall of the Taliban regime in 2001.

India’s investments in the textile sector can turn Afghanistan into a country exporting textiles. Afghanistan once had a vibrant textile industry, employing thousands of workers. Today, there is no textile manufacturing in the country. The textile industry is a potential growth market for Afghanistan. It can expand economic opportunities for women entrepreneurs. It’s possible to develop textile trade hubs with an emphasis on high value added products. The country is endowed with high quality raw materials as well as low production costs which give it a competitive edge.