India in Afghanistan: Understanding Development Assistance by Emerging Donors to Conflict-Affected Countries

Issue Brief

India in Afghanistan: Understanding Development Assistance by Emerging Donors to Conflict-Affected Countries

This policy brief analyzes Indian development assistance to Afghanistan, arguing that India has a significant comparative advantage in aid delivery and that traditional donors such as the United States could greatly benefit from increasing their collaboration with India in delivering aid to Afghanistan. Today, Afghanistan is the second-largest recipient of Indian aid. India is also the fifth largest donor to Afghanistan and the largest regional donor. As seen in figure 2, India provided over half a billion dollars in development assistance to Afghanistan in PPP terms in 2015/16 – a significant amount at a time when traditional donors have been decreasing their aid to Afghanistan and delivery of aid project had become more costly and difficult due to rising insecurity.