ISSN: (Online) 2321 -4155
ISSN: (Print) 2320 -7000

JOURNAL OF INDIAN RESEARCH
VOLUME : 3, ISSUE : 3, July-September, 2015 (ISSN No. : 2321-4155)
 
BILATERAL TRADE RELATIONS BETWEEN INDIA AND PAKISTAN: RECENT EXPERIENCE AND FUTURE PROSPECTS
Dr. Sandeep Kumar
 
ABSTRACT
India and Pakistan are two most populous and largest economies of the South Asian Region (SAR), however official bilateral trade accounts for only less than one per cent of India’s global trade. Their rapprochement has the potential to change the geopolitical dynamics of India. This paper examines bilateral trade relationship in terms of share in global trade, bilateral trade flow, trade intensities, trade reciprocities, revealed comparative advantages, possibility of intra- industry trade along with overall potential of trade between two neighbours for the period 1996-2014. The study highlights weakness in overall bilateral trade relation and recommend multipronged strategy encompassing reduction in existing high rates of tariff and non-tariff barriers; lowering of trade costs of at least specific products of interest , reduction in infrastructure and financial bottlenecks, opening up of more trade routes through sea, rail as well as road; expansion of investment and technology transfer in the production and marketing of those products which enjoy high revealed comparative advantage, dilution of multiple rules and regulations, trade diversification and promotion through trade facilitation measures like Make In India, Digital India and Skill India programs, granting MFN status to India as soon as possible to reduce cost and loss of revenue through informal trade and resolving transit rights to improve the existing trade relations.
 
KEYWORD
Comparative advantage index, Grubel Lloyd Index, intra- industry index, MFN, trade intensity index, trade potential, trade reciprocity index.
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