FICCI study shows India Pakistan trade could reach $5bn

05/26/05 - newratings.com

LONDON, May 26 (newratings.com) – The annual free trade turnover between neighbours India and Pakistan has the potential of reaching $5 billion, up from the current level of $400 million, in the course of a year, if attempts are made to remove the trade barriers and regulate the ongoing illegal trade between the two countries, according to a recent study conducted by the Federation of Indian Chambers of Commerce and Industry (FICCI).

The estimated value of illegal trade between India and Pakistan is more than $2 billion, significantly higher than the value of the official trade between the two nations, the FICCI report added. The study was conducted on the eve of a six-day visit by a 100-member delegation of Indian businessmen led by the President of the FICCI, Onkar S Kanwar. The delegation represents 18 different sectors of the Indian economy, including steel, pharmaceuticals, engineering and chemicals. The FICCI study has identified seven areas that need priority attention to ensure smoother bilateral trade, including de-freezing of the list of items importable from India, liberalising business visa regulations, opening up trade in services, highway linkage between the two countries, linking of rail services, road route via the Wagah border and the dismantling of trade and tariff barriers.