India will host the Delhi Investment Summit 2012 on Afghanistan starting on Thursday. The objective of this Summit is to attract, foreign investment into Afghanistan in the light of new opportunities opening up in areas like mining, hydrocarbons and infrastructure, and badly needed investments in traditional sectors like agriculture, industry, capacity-building, health and services, after three decades of conflict.
Over 65 foreign companies from over two dozen countries in the region have already registered at the investors’ conclave, which is being organised by the Confederation of Indian Industry (CII) in collaboration with the governments of India and Afghanistan.
The spotlight will be on Pakistani and Chinese companies which will be participating for the first time in a regional conclave on Afghanistan that India is hosting, indicating the possibilities of cooperation in a country that is widely seen as an arena of rivalry between New Delhi and Islamabad.
US has lauded India’s “excellent” initiative to host a major investment summit on Afghanistan and said more than a dozen American companies have signed up to participate in the upcoming event in New Delhi.
“We have more than a dozen American companies participating in the conference to explore investment opportunities, including big companies like DuPont, Price Waterhouse Cooper, General Electric, ExxonMobil,” State Department spokesperson Victoria Nuland told reporters.
“So we think this is an excellent initiative to strengthen private sector investment, to strengthen regional links and shows great leadership the Indian government’s part,” Nuland said in response to a question on the meeting which is scheduled to be held in New Delhi on June 28.
“We have encouraged our firms interested in Afghanistan to participate. So are very much appreciative,” Nuland said.
Pakistani companies working in areas of agriculture, food and consultancy services will be participating in the investors’ meet.
The Summit will include presentations at the Ministerial level on the Investment Climate in Afghanistan, Afghanistan’s national growth strategy, and long-term and short-term investment opportunities; and panels on cross-cutting issues and challenges like financing, investment protection, infrastructure issues, security, logistics, transit etc., as well as sector specific themes like mining, agriculture, small and medium industries, healthcare and pharmaceuticals, higher and vocational education and possibly other areas.
It also hopes to showcase success stories and innovative partnerships and explore the possibility of cross-country collaborations that can build collective confidence in investing in Afghanistan.
The conclave is the first of its kind in so far as it focuses on promoting private sector investment from the region to rejuvenate and strengthen the Afghan economy, which has been battered by years of conflict.
The investors’ meet is expected to chart a framework for facilitating investment into Afghanistan through cross-cutting partnerships in areas and sectors identified by the Afghan government, senior officials said here Thursday.
The recommendations of the conclave will be considered at the Tokyo conference July 8 at which the international community will pledge funds for Afghanistan after the US-led NATO troops withdraw by 2014.
The meet underscores India’s growing stakes in the economy and security of Afghanistan. India has pledged $2 billion for the reconstruction of Afghanistan, which has not gone down well with Pakistan, which is prone to see that country as part of its strategic backyard.
India and Pakistan have not discussed Afghanistan in their bilateral talks so far, but there is indication of a move in that direction.
Pakistan President Asif Ali Zardari June 8 met External Affairs Minister S.M. Krishna briefly in Beijing on the sidelines of the Shanghai Cooperation Organisation (SCO) summit and inquired about India’s activities in Afghanistan. Krishna explained that India was focusing mostly in areas of capacity building, education and health.