Journal
| Title | India-Pakistan Trade: Problems and Prospects | |
| Author's Name | S.R.T.P. Sugunakararaju | |
| ISSN | 0974-7281 | |
| Page(s) | 34-53 | |
| Volume No. | 3 | |
| Issue Month | july 2011 | |
| Keywords | Comparative advantage, MFN-status tariff, Non-tariff barriers, Peace, Political differences, Regional cooperation, Trade complementarities. | |
| Abstract | This article examines the major issues in Indo-Pak bilateral trade. It argues that there are trade complementarities and comparative advantages between India and Pakistan and that both would gain if they cooperate on the trade and economic front. The bilateral trade and economic interaction between the two neighbours had in fact become a strategic consideration in their thinking and therefore become hostage to larger political and strategic issues. External factors, especially the role of MNCs in case of Pakistan, also hinder the growth of Indo-Pak trade. This article attempts to show that there are strong economic imperatives for increasing the volume of trade and economic cooperation between India and Pakistan. This assumption is based on: (a) an analysis of past trends in trade between India and Pakistan; (b) current level of international trade between the two countries; and (c) the changes in the global and economic environment and the urge of the business communities in Pakistan and India to increase the economic and trade relations between the two South Asian neighbors. Increasing trade and economic linkages can potentially lead to Indo-Pak peace and friendship. |
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