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dc.identifier.citationManisha & Bhatia, Sandeep Kaur (2018) India-Pakistan Trade: Problems, Prospects and Challengesen_US
dc.description.abstractThe economic cooperation has been challenging in the South Asian Association for Regional Cooperation (SAARC) region. Due to the political conflicts between India and Pakistan, development of the South Asia has been on hold. The present study is an attempt to see the historical and economic linkages between India and Pakistan and to overview the impact of the bilateral trade between India and Pakistan from the perspectives of both the countries. The findings of the study reveal that both the countries’ trade has been fluctuating during the study period of 1981- 2015. To investigate the competitiveness of India and Pakistan trade in the top twenty commodities, different trade indices like Revealed Comparative Advantage, Reveled Symmetric Comparative Advantage, Intra-Industry Trade, Trade Complementarity Index, Trade Potential Index, and Herfindahl-Hirschman Index has been calculated. The empirical results of the study show that in the top twenty commodities, India has the maximum competitive strength in Organic Chemicals, Inorganic chemicals, Precious metal compound, isotopes, Ships, boats and other floating structures, Impregnated, coated or Laminated Textile fabric and Edible vegetables and certain roots and tubers while Pakistan has maximum strength in Ores slag and ash, Articles of apparel, accessories, knit or crochet, Organic chemical, Products of animal origin, nes, Mineral fuels, oils, distillation products, etc., Ships, boats and other floating structures and Articles of apparel, accessories, knit or crochet. The results of the Intra-Industry trade between India and Pakistan reveal that Wool, animal hair, horsehair yarn and fabric thereof, Vegetables textile fibers nes; paper yarn, woven fabric, Residues wastes of food industry shift from inter industry trade to Intra Industry trade in case of top export product of India. While in case of top exports products of Pakistan, Intra-Industry trade shows that Products of animal origin, nes, Articles of apparel, accessories, knit or crochet, Nuclear reactors, boilers, machinery, etc, Inorganic chemicals, precious metal compound, isotopes, Residues, wastes of food industry, animal fodder shift from inter industry trade to Intra Industry trade. The results of the study found that India has maximum export potential in Pearls, precious stones, metals, coins, etc. while Pakistan has in Inorganic chemicals, Precious metal compound isotopes. Some of the commodities of Pakistan has found reduced tariffs, increased comparative advantage led to increase the Intra-Industry trade also i.e. Ores, slag and ash, Mineral fuels, mineral oils and products of their, Special woven fabrics, tufted textile fabric lace, and Headgear and parts thereof has, indicating that these items gaining their trade competitiveness. While in case of India, commodities, namely Other vegetables, textile fibers; paper yarn and woven and Wool, fine or coarse animal hair yarn. A field survey was carried out in the month of August to November, 2016 at Wagah-Border (Amritsar). The investigation establishes that the security clashes, roaming facilities, infrastructure constraints, corruption and harassment, informal trade and Hawala payment are the primary Non-Tariff Barries. Betel Leaves, Dry Fruits, Wheat, Synthetic Fibers and Liquor have been informally traded from India via third route (Dubai). There should be some effective policy made by the government of both the countries to resolve the Kashmir Issue, Sir Creek, Water Dispute and Siachen Glaciers. There should be proper warehouse facilities, timely checking, more cargo facilities and open the other two gates at the Attari-Wagah border. The Indian government should introduce modern techniques to fast-track the import procedures, especially at the time of excessive security checks. Ministry of Communication should make some policy and agreement to reduce the telecommunication gap between the countries. Corruption and harassment at the land customs station should be checked at a high level. Security clashes at the border and political statement by India should be avoided for the smooth bilateral trade. For deeper and stronger trade linkages, it is important that the bilateral visa regime should be liberalized without compromising on security, and there is free flow of investments between the two countries. A joint working group includes officials from the Ministry of Finance, Ministry of Commerce, and the Central Bank should discuss policy measures that may incentivize the formalization of the current informal inflows from India to Pakistan in such a way that does not restrict the economic growth of formal trade between the countries. The Ministry of Finance of India should report, annual revenue losses to the informal trade.en_US
dc.publisherCentral University of Punjaben_US
dc.subjectRegiol Trade Agreementsen_US
dc.subjectSouth Asian Association for Regiol Cooperationen_US
dc.subjectTrade Intensity Indexen_US
dc.subjectTrade Complementarity Indexen_US
dc.subjectRevealed Comparative Advantageen_US
dc.subjectRevealed Symmetric Comparative Advantageen_US
dc.subjectHerfindahlHirschman Indexen_US
dc.subjectIntra-Industry Trade (IIT)en_US
dc.subjectNonTariff Barriersen_US
dc.titleIndia-Pakistan Trade: Problems, Prospects and Challengesen_US
dc.contributor.supervisorBhatia, Sandeep Kaur

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