NEW DELHI: Afghan President Hamid Karzai held talks with Indian Prime Minister Manmohan Singh in New Delhi on Monday, appealing for increased investment in his war-torn country.
India has provided billions of dollars of aid to Afghanistan since the fall of the Taliban in 2001, and is keen to help prevent the return of a radical Islamist regime in Kabul after international troops pull out in 2014.
But any Indian activity in Afghanistan triggers sensitivities in neighbouring arch-rival Pakistan, which fears losing influence in Afghanistan and being encircled.
In October last year India and Afghanistan signed a "strategic partnership" aimed at deepening security and economic links, with Karzai keen to elevate India's involvement further.
At a weekend meeting with business leaders in Mumbai, he promised a "red carpet" welcome for Indian investment as US-led coalition forces prepare to withdraw.
"Indian businesses need not be shy while thinking about Afghanistan," he said. "Chinese businesses were there long before you came, five or six years ago.
"If you don't arrive on the red carpet, it will get dusty. Therefore, do hurry up in coming and take advantage of the opportunities in Afghanistan."
Karzai met Singh Monday morning and the two leaders were to hold a press conference later in the day.
India has not contributed to the international forces deployed in Afghanistan, but has worked on low-key troop and police training as well as infrastructure development.
The US was previously wary of India's presence in case it led to a "proxy war" with Pakistan on Afghan territory, though US Defense Secretary Leon Panetta encouraged India to play a more active role while visiting New Delhi in June.
At a meeting soon afterwards to promote trade with Afghanistan, then-Indian foreign minister S.M. Krishna said potential business interests must overcome "the anxiety of withdrawal, uncertainty, instability and foreign interference".
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