Since the defeat of Taliban in 2001, India has drawn much closer to Afghanistan. The significance of India-Afghanistan bilateral ties can be well noticed from the crucial role that India has been playing in Afghanistan’s capacity building and development. Importantly, in terms of development assistance, India currently stands as Afghanistan’s fifth largest donor country. Afghanistan is also advantageous for India’s economy given the trade and investment potential especially considering its untapped resource potential. A stable Afghanistan is also pivotal for a peaceful South Asia. Thus, with the withdrawal of international forces from Afghanistan in 2014, India’s role in Afghanistan’s stability and reconstruction efforts is expected to rise drastically. Keeping all these factors into consideration as well as the Afghanistan’s significance for India to endorse its model of development cooperation and to stamp regional authority, we have tried to analyze in detail the evolving India-Afghanistan relation with a special focus on India’s development cooperation.