India and Pakistan Trade : A Glance

1. DR.D.ELANGO
ASST.PROFESSOR OF ECONOMICS
GOVERNMENT ARTS COLLEGE
COIMBATORE

2. Relations between India and Pakistan
have been complex and largely hostile due
to a number of historical and political
events. Relations between the two states
have been defined by the violent partition
of British India in 1947, the Kashmir
conflict and the numerous military conflicts
fought between the two nations.

3. • Pakistan and India are two largest economies of
South Asia. • Common border, common history,
culture, languages, geography, agriculture zones
and climate. • According to World Bank Pakistan
and India accounts: • 92% GDP of South Asia’s,
85% population and 80% surface area but only
20% share in regional trade. • After six decades
they don’t have normalize trade relations. • The
Pakistan economy exported US$ 23.6 billion
goods and imports were US$ 44.92 billion • India
exports of goods are US$ 304.6 billion and
imports are US$ 489.4 billion. • This huge
difference between sizes of economy between
both countries.

4. Even though, the trade between India and
Pakistan can increase from $2 billion at
present to $37 billion in 2018 if both
countries do away with artificial trade
barriers, a World Bank report said on
Wednesday. Pakistan allows only 138
items to be imported from India over the
Attari–Wagah land route.

5. • Notably, following the 2019 Pulwama attack,
the Indian government revoked Pakistan's
most favoured nation trade status, which it
had granted to Pakistan in 1996. India also
increased the custom duty to 200% which
majorly affected the trade of Pakistani
apparel and cement.

6. Pakistan import from India
The top ten products exported by Pakistan
to India include fresh fruits, cement,
petroleum products, minerals, and leather.
Processed minerals, inorganic chemicals,
raw cotton including waste, cotton fabrics,
and glass and glassware are also among
such items that account for 95 per cent of
the total shipments.

7. products exported from Pakistan
Pakistan's exports continue to be
dominated by cotton textiles and apparel.
Imports include petroleum and petroleum
products, , chemicals, fertilizer, capital
goods, industrial raw materials, and
consumer products.

8. What does Pakistan make?
Pakistan's industrial sector accounts for about
24% of GDP. Cotton textile production and
apparel manufacturing are Pakistan's largest
industries, accounting for about 65% of the
merchandise exports and almost 40% of the
employed labour force.

9. Why did India import sugar from
Pakistan?
Import from Pakistan has been very miniscule
as compared to total production in the country
and exports from India. Further, it has been
reported that Pakistan Government has
provided cash freight subsidy of Rs 10.7 per kg
on sugar. At present import of sugar is free with
a customs duty of 100%.

10. India sold nearly 23.56 Lakh passenger cars
in its domestic market in 2014-2015 as
compared to a meagre 1.52 lakhs by
Pakistan in the same year. NEW DELHI:
Data accessed from the Pakistan
Automotive Manufacturers Association
reveals an embarrassing statistic for the
automotive industry in Pakistan.

11. What does India import from
Pakistan?
• The top ten products exported by Pakistan to
India include fresh fruits, cement, petroleum
products, minerals, and leather. Processed
minerals, inorganic chemicals, raw cotton
including waste, cotton fabrics, and glass and
glassware are also among such items that
account for 95 per cent of the total shipments.

12. Beef exports banned in India
• Under the current trade laws of India, the
export and import of beef (meat of cow, oxen
and calf) is prohibited. Bone in meat, carcass,
half carcass of buffalo is also prohibited and is
not permitted to be exported. Only the
boneless meat of buffalo (carabeef) is
permitted for export.

13. Does Pakistan have oil?
According to media reports, if oil deposits are
discovered as expected, Pakistan will be among
top 10 oil-producing countries. Pakistan
currently meets only 15 per cent of its domestic
petroleum needs with crude oil production of
around 22 million tons; the other 85 per cent is
met through imports

14. • Trade between Pakistan and India can gave
remarkable benefits to the Pakistan. Low cost
product and more variety of goods available
for consumers. • The Pakistan’s government
will earn more benefits by formalized trade in
the form of custom duties which are presently
lost by illegal trade Nabi (2013). • According to
an estimate, the liberalized agriculture trade
between Pakistan and India would generate
around 2.7 lakh jobs in India and 1.7 lakh jobs
in Pakistan Chengappa (1999).

15. THANKYOU