Rekindling the Future - India Pakistan Economic Relations


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Rekindling the Future - India Pakistan Economic Relations

  1. 1. BUSINESS DIGEST VOL. NO. 8 ISSUE NO. 11 FEBRUARY 2012A time to rekindle the futureThe India showgoes to Lahore
  2. 2. Inside… BUSINESS DIGEST VOL. NO. 8 ISSUE NO. 11 FEBRUARY 2012ChairmanDr. Rajiv KumarEditor 14 Cover Story: A time to rekindle the future The India showMeera Kumar » The ‘India Show’ goes to Lahore goes to LahoreManaging Editor » Benefits of two-way tradeSukumar Sah » Potential areas of cooperationAdvertising & CirculationAnimesh Goswami 4 Secretary General’s MessagePL JosephVeena SrivastavaRahul Siwach 6 Fiscal viability, delivery outcomes of Food Subsidy Bill in doubtDinesh Bhandari 10 500 million Indians will need new homes in urban areas by 2025: FICCI ReportDesign & 22 Gradual shift in global economic power© All Rights are reserved.No part of this publication may be 24 ‘Introduce National Policy on Railways’reproduced, stored in a retrievalsystem, or transmitted in any form or 25 Financing of PPPs, major challenge for banks: FICCI-E&Y Paperby any means, Electronic, Mechanical,Photocopying, Recording and/orotherwise without the prior written 26 Ashwani Kumar for ‘frugal innovation’ to produce quality products cheaplypermission of the Publisher.Statement about Ownership and other 28 Financial literacy for retail investors vitalParticulars about the Journal (FICCIBusiness Digest) required to be 32 India should stay on reforms course, says Financial Times’ Martin Wolfpublished under Rule 8 of theRegistrar Central Rules, 1956. 36 NDMA concern at capability to deal with chemical and biological disastersPrinted and Published by SecretaryGeneral on behalf of (or owned by) 37 Threat perception of chemical, bio-terrorism is high: Gen. VijFederation of Indian Chambers ofCommerce and Industry, New Delhi 38 Promoting safe use of industrial chemicalsand Published at Federation HouseTansen Marg, New Delhi - 110001 40 Macro-economic indicatorsR.N.I No. DELENG/2004/13722Federation of Indian Chambersof Commerce and Industry, FICCI,Federation House, Tansen Marg, WE LOOK FORWARD TO YOUR FEEDBACKNew Delhi - 110001Phone: 23738760-70 (11 Lines) We would like your feedback/comments to enable us toFax: 23320714, 23721504 improve our offering. Write to us at: orE-Mail:, sukumar@ficci.comWebsite: For Advertising, please write to: publications@ficci.com2 || FICCI Business Digest || February 2012
  3. 3. SECRETARY GENERAL’S MESSAGE Dear Reader, O ur special feature in this issue focuses on FICCI’s leading priority, which is to contribute to improving India-Pakistan relations and economic ties. As a part of this FICCI organized the ‘India Show’ at Lahore and took a delegation of about 100 businessmen to Lahore, Karachi and Islamabad. The effort is helping the two neighbours to recognize their enormous potential and the benefits of collaboration. The delegation was led by Minister of Commerce, Anand Sharma. Both countries are coming to recognize that India Pakistan trade amounts to less than 1 per cent of their respective global trade, a Dr. Rajiv Kumar travesty when the potential for bilateral trade between the two countries is tremendous. We were somewhat disappointed that contrary to our expectations, the Pakistan cabinet shelved the decision to phase out the positive list and replace it with a negative list as the basis for conducting bilateral trade. But this disappointment has since given way to strong optimism with the announcement late February by the Pakistan government to adopt this historical step and to move to a full-fledged MFN based trade regime with India by the end of the year. FICCI’s efforts will stand vindicated once the two countries begin to trade, invest and allow movement of persons across each other’s borders as any other neighbors are expected to do. To move to another vitally important subject, here are some stark facts - by 2025 nearly 500 million Indians will need new, urban homes, close to the needs of China, North America and Western Europe combined. India’s population is slated to grow to 1.7 billion by 2050 and rapid urbanization will add nearly 900 million people to its cities. City capacity will need to grow nearly 400 per cent in less than 50 years. This is the scale of urbanization and urban infrastructure needs India has to contend with. We present some interesting perspectives on this matter in this issue. You can also read Martin Wolf’s views regarding the lessons India should learn from the European crisis in forming its own policies. Martin Wolf, renowned commentator of the Financial Times suggests two big lessons; his lecture at FICCI was very well received – you will enjoy reading the conclusions he draws for India. We also bring you President Kanoria’s article on how businesses and national governments are coping with the gradual shift in global economic power which appeared in The Economic Times of February 9, 2012. This issue also carries an excerpted article authored by me and Dr. Soumya Kanti Ghosh on the pitfalls of the food subsidy program on which our government has embarked in full measure. We at FICCI would be delighted to get your feedback. 4 || FICCI Business Digest || February 2012
  4. 4. COVER STORY The ‘India Show’ goes to Lahore Rekindling The Future Anand Sharma, India’s Commerce & Industry and Textiles (2nd from right) with Makhdoom Amin Fahim, Pakistan’s Senior fedral Minister for Commerce, at the ‘India Show’ in Lahore. F ebruary 13, 2012 will go FICCI in association with the down in the history of India- India’s Commerce and Industry Pakistan relations as the day Ministry, and with the support of when commerce scored over politics; Commerce Ministry of Pakistan a day when the business leaders of organized the first ever exhibition of both nations embraced one another; Indian products in Pakistan (Lahore) when Indian CEOs walked the extra at the Lahore Expo Centre from mile right through the Attari-Wagah February 11-13, 2012. The India The popular sentiment border their Commerce Minister, Show was inaugurated by Makhdoom breaking down, as it were, the ‘Berlin Amin Fahim, Senior Federal Minister voiced by the business Wall of Asia’. for Commerce, Government of community in Pakistan India-Pakistan trade has Pakistan. Fifty six Indian companies historically been low due to decades put up 110 stalls showcasing India’s is in favour of opening of hostilities and mistrust between accomplishments in sectors such borders to promote the two countries; currently the as agricultural machinery and farm peace. A majority trade volume is stagnating at US$ 2.7 equipments, automobile components, billion. This is surely set to change; apparels, consumer durables, tea, of the chambers of the US$ 6 billion trade target by 2014 coffee, herbal products, home commerce of Pakistan seems within grasp. appliances and gems and jewellery. More than 120 Indian business The three-day exhibition saw footfalls have conveyed to the leaders visited Lahore, Karachi and of more than 60,000, with a large Pakistan Government Islamabad from February 13-15 to number of Pakistani people truning participate in meetings organized up religiously for the show every day. that it is time to put by the Chambers of Commerce Indian exhibitors were overw- in place a liberal trade and Industry of Lahore, Karachi, helmed by the response to their stalls. Rawalpindi and Federation of Many exhibitors who had got limited regime.  Pakistan Chambers of Commerce samples for display gave them away and Industry which were addressed as a goodwill gesture to the visitors at by the Commerce Ministers of India their stalls. Some did brisk business and Pakistan and Presidents of like the water purifier maker, Kent, FICCI and CII. which received several queries and is 14 || FICCI Business Digest || February 2012
  5. 5. COVER STORYR. V. Kanoria, President, FICCI, presenting a memento to Makhdoom Amin Fahim. Anand Sharma (left) looks exploring the possibility of tying accrue from it. He also said that the Former FICCI President, Rajanup with local distributors and dealers India Show at Lahore had kicked off a Bharti Mittal, expressed deepin Pakistan to market its goods. new phase in the trade and economic satisfaction over the “historic’ Anand Sharma, Indian Commerce, engagements of India and Pakistan visit and emphasized the need toIndustry and Textiles Minister, and that the visit would consolidate introduce a more liberal visa regime.presided over the closing function people-to-people exchanges between “A businessman can’t function with aof the India Show. FICCI President, the two countries. The Indian Com- city specific visa that does not allowR V Kanoria, addressing the gath- merce Minister along with senior him to visit more than one city.ering on this occasion expressed business leaders from India including While it is alright to have a moreoptimism about the interest that this FICCI President called on the restrictive visa regime due to securityhistoric visit would generate and the Governors and Chief Ministers of reasons, in the case of businessmangains that both the countries would Punjab and Sind. there is a strong case for easing rules to promote trade and commerce,” he observed.Top Five Export Items from India to Pakistan (Figure In USD Million) FICCI President, R V Kanoria felt that India has to be more S. No. HS Code Commodity 2009-2010 2010-11 accommodating with Pakistan in importing goods such as cement in 1 17 Sugars and Sugar 1.07 654.01 which Pakistan has a compataive Confectionary advantage so that the trade imbalance against Pakistan is reduced. 2 52 Cotton 242.77 401.82 The popular sentiment voiced by the business community in Pakistan 3 29 Organic Chemicals 308.29 273.78 is in favour of opening borders to promote peace. A majority of the 4 54 Man-made Filaments 419.78 234 chambers of commerce of Pakistan have conveyed to the Pakistan 5 7 Edible Vegetables and 59.85 74.05 Government that it is time to put Certain Roots and Tubers in place a liberal trade regime. The focus must shifted to direct Source: Ministry of Commerce and Industry, Govt. of India trade between the two countries. February 2012 || FICCI Business Digest || 15
  6. 6. COVER STORY A Pakistani businessmen trading with the Indian Oil Corporation pointed out that there was demand of 30,000 million tons of petrochemicals per month from Pakistan which could increase three-fold if trade is allowed in this commodity through the Wagah Border. It’s interesting to note that info- rmal trade, including third country trade, between India and Pakistan is estimated at USD 10 billion while the formal trade is only about US$ 3 billion. Trade through third countries or the circular trade is mainly conducted through agents operating in free ports like Dubai or Singapore and the Central Asian Republic (CAR) countries. Indian business leaders with Commerce Ministers of India and Pakistan. The fact that a large number of items are traded between India and Pakistan through informal channels presents the case for potential increase in bilateral trade. The informal trade A long standing demand of India India-Pakistan trade between the two countries mainly which has been accepted by the takes place through two routes: One Pakistani establishment is the easy has historically been is smuggling across the borders and availability of visas and easing people low due to decades of other is through a more circuitous to people contact. In a Joint Statement route, involving a third country. issued at Islamabad at the conclusion hostilities and mistrust Informal trade happens in goods of the official level bilateral talks, between the two that are not on Pakistan’s positive the Commerce Ministers of India list and hence cannot be imported and Pakistan said that it has been countries; currently legally (Pharmaceuticals, cosmetics, decided, in principle, to give multiple the trade volume is jewellery) and have a high import visas to businessmen and modalities tariff in Pakistan (e.g. betel leaves and are being worked out. Agreements stagnating at US$ 2.7 tractor tyres. Estimates of informal are also being framed on cooperation billion. This is surely trade vary from US$ 500 million and mutual assistance in customs to five times the size of the formal matters, bilateral cooperation set to change; the US$ trade. The main items of import from on mutual recognition between 6 billion trade target India are cloth, tires, pharmaceutical Pakistan Standards and Quality by 2014 seems within and textile machinery, cosmetics, Control Authority and Bureau of livestock and medicines. They acco- Indian Standards and Redressal of grasp. unt for roughly 80 per cent of the Trade Grievances between Pakistan total import value. and India. Top Five Import Items from Pakistan to India (Figure In USD Million) S. No. HS Code Commodity 2009-2010 2010-11 1 8 Edible Fruit and Nuts; Peel or Citrus Fruit or Melons 46.41 62.98 2 27 Mineral Fuels, Mineral Oils and Products of their Distillation, 9.55 56.99 Bituminous Substances, Mineral Waxes 3 25 Salt; Sulphur; Earths and Stone; Plastering Materials; 42.58 40.43 Lime and Cement 4 29 Organic Chemicals 47.01 32.67 5 52 Cotton 39.1 22.24 Source: Ministry of Commerce and Industry, Govt. of India 16 || FICCI Business Digest || February 2012
  7. 7. COVER STORYReduction in Cost if imported from India Sector Pakistan’s Cost Reduction if Imported from India (in per cent) Steel 55 Transport Equipment 26 Engineering Goods 15 Bicycles 20 Pharmaceuticals 35 Fruits & Vegetables 40 Sugar 30 Source: FICCI Survey (2009) While Pakistan’s informal exportsmainly consists of textiles, 88 percent of these trades are routedthrough third countries. The mainimplications of informal trade are:loss of revenue for the exchequer andincreased cost for the consumers.The cost of transportation goes upby 1.4 to 1.7 times when the indirectroute Mumbai- Dubai-Karachi isused instead of the direct routeMumbai – Karachi. This is a clearindication that Pakistan should openup its trade with India. The majorroutes for informal trades are fromDubai, Singapore and Afghanistan. In the area of infrastructure and L to R: B. Muthuraman, President, CII; Partap Singh Bajwa, Member of Parliament; Anand Sharma, India’s Commerce & Industry and Textiles; Makhdoom Amin Fahim, Pakistan’sissues of connectivity to boost trade Senior Federal Minister for Commerce; Javed Akhtar Bhatti, President, Rawalpindi Chamber ofand commerce, important items Commerce and R. V. Kanoria, President, FICCI’s wish list, the IndianCommerce Minister hoped that theconstruction of an integrated check- and incomes of people, besides produce cost-effective quality at the Wagah – Attari Border facilitating the development of cold The Board of Investment haswould be complete and ready by April chains, warehouses and logistics indicated that Pakistan has sothis year.  Earlier, it was expected in the border areas like which can far made bila-teral investmentto be completed by February.  It is immensely transform the region. agreements with 46 countries (exceptestimated that the new gate which Pakistan does not have restriction India) during the period from 1959leads to the integrated check-post on Indian investments whereas to 2004. Currently, there is no jointat Wagah would help increase the India does not have FDI from venture between India and Pakistannumber of trucks transporting Pakistan at present. According to despite of a strong business interestgoods through Wagah – Attari from Anand Sharma, India is actively on both sides due to the absence ofthe current 100-150 to 500 – 600. contemplating changes in the foreign an enabling environment for suchIndia and Pakistan are also in talks Exchange Management Act (FEMA) investment. For example, there are nodiscussing opening another trade to all foreign direct investment from institutional mechanisms for bilateralroute in the Munabao - Khokrapar Pakistan. investment guarantees. There isroute. A Joint Working Group is As India and Pakistan compete to considerable lack of information andexamining the feasibility of the new sell their goods in the global market, awareness about each other’s tradetrading point. Any increase in trade there are many areas in which regime, commercial policies andthrough the land route will have both the countries can complement business and regulatory procedures.spin-off effects on the infrastructure each other’s needs and hence February 2012 || FICCI Business Digest || 17
  8. 8. COVER STORY Potential Joint Ventures between India and Pakistan SAARC Chamber of Commerce and Industry has identified investment possibilities in Pakistan in sectors such as fish processing, chemicals and pharmaceuticals, automobile components and information technology. A study commissioned by FICCI jointly with SAARC Chamber of Commerce & Industry and formu- lated by Tata Economic Consu-ltancy Services outlines the industrial in- vestment opportunities & scope for joint venture in SAARC Countries. The potential Joint ventures identified between India and Pakistan Vikramjit Sahney, President, SAARC Chamber of Commerce & Industry addressing a business are the following: meeting in Karachi. Industry Group Project Focus Information Software Exports Training Centre / Center for Software Training & Management (CSTM) Software Technology (IT) Development Center (SDC). Pakistan has the potential to become an important software exporting and training center. India can become a role model & both the countries should co-operate & collaborate to tap the large global market for software. Fish Processing Processed Frozen / Canned Fish Products Future thrust should be on valve added canned products exports to the developed countries Drugs and Bulk Drugs Pharmaceuticals Expansion of formulation sector (tablets, capsules, ointment, injections etc.). Expansion of health care products (IV fluids, disposable syringes, diagnostic kits etc.). Indian pharma industry can provide the necessary support & assistance to Pakistan for the expansion of its Industry. Agro-Chemicals A pesticides manufacturing Unit in Pakistan. With the expansion of agri business, demand for agro chemicals will grow in future. Indian major players can play an important role through transfer of technology. Chemicals Dyes and pigments manufacturing unit in Pakistan Pakistan has a strong manufacturing base for textiles and leather. Indian players and multinationals can assist Pakistan in developing the sector. Automobile Integrated auto component complex. Ancillary Next to India, Pakistan is the only country in the SAARC Region to Manufacture & Assemble Passenger Cars. Pakistan may also consider Assembly of HCV & LCV in collaboration with Tata Motors / Ashok Leyland from India. Light Engineering L P G cylinder manufacturing unit in Pakistan Technology can be sourced from India. Scope for Inclusion of cylinders for Industrial Gases. Leather Manufacturing complex for a variety of value added processing Leather Footwear complex: value Leather Garments added products Leather Bags for exports Pakistan & India should cooperate to Tap the Global Market and expand Market Share. 18 || FICCI Business Digest || February 2012
  9. 9. COVER STORY India’s initiative found a morethan adequate resonance in thePakistani establishment. With therecent announcement by Pakistanof a negative list of items importablefrom India and its commitment togrant Most Favoured Nation (MFN)status to India by the end of this The sentiment today on both sidesyear, quite suddenly the prospects of the border is optimistic, one thatof reaping the advantages from the give gives rise to anticipation andSAFTA agreement have brightened. hope of rekindling the future.Comparison with other SAARC Countries Country Population (in million) 2010 est. GDP, PPP (constant 2005 Total Trade with India in billion international $) 2010-11 (in USD billion) Bangladesh 148.69 221 (2010 est.) 4.05 Sri Lanka 20.86 95 (2010 est.) 4.54 Pakistan 173.59 419 (2010 est.) 2.67 Source: WDI & Ministry of Commerce and Industry, India Benefits of Potential Areas of Cooperation two-way trade Agriculture: India and Pakistan, both Cement: There has been sharp agrarian economies, could cooperate increase of export of cement from India Pakistan trade amounts in agricultural sector which is a Pakistan to India in recent past to less than 1 per cent of their major component of GDP and largest because of the increasing demand respective global trade. However, employment generating sector in either in India. This is due to the boom in the volumes of third country trade country. The food and agri- business the housing and construction sector. and informal trade indicate the industry has a significant impact on Rising trade in cement is win-win tremendous potential for bilateral the regional economy. This industry situation for both countries and will trade between the two countries. has one of the highest economic help Pakistan to reduce its trade Several restrictions on official multiplier effects among the various deficit with India. trade compel both the countries industries even ahead of telecom or to import certain goods from far power. Liberalized India-Pakistan Engineering Industry: Trade libera- off sources, which they can easily trade in agro sector would give further lization with India especially for import from each other. India boost to employment generation in iron ore which is an important raw Pakistan trade would ensure both the countries. The recent export material for steel industries will place cheaper raw materials and low of sugar, onion, tomato, fresh meat and the engineering goods industry of transportation and insurance live animals from India to Pakistan Pakistan at a significant advantage helped Pakistan to overcome short- by bringing down prices of steel and cost which would translate into term fluctuations in supply. that of finished engineering goods. At quality goods at competitive prices Trade in agriculture between present, Pakistan imports basic raw for both the countries. While India and Pakistan till date has been material, iron ore, at a high cost from consumers would gain in terms crisis driven. However, if a robust Brazil and Australia. of lower prices, higher purchasing regulatory mechanism is put in place power and greater choice of traded in both the countries, agriculture Transport Equipment: As a conse- goods; manufacturers will have trade could well become market quence of high protection provided access to the wider markets in the driven. Integration of markets across to domestic auto assemblers (two neighbourhood. The Government the border would have a favorable & four wheelers) prices paid by would have revenue gains by impact on agriculture trade as it Pakistan consumers are substantially bringing informal trade into the shall even out fluctuations in supply, higher than comparable prices formal channel. Ultimately, this moderate prices and provide a wider internationally. Bicycle is another would result in a win-win situation basket of agricultural goods for category where Indian products for everyone. consumption. could impact the Pakistan market February 2012 || FICCI Business Digest || 19
  10. 10. COVER STORY can particularly help to enhance competitiveness of its leading export sectors i.e. textile and leather. Plastics: Pakistan’s plastic products could dominate Indian market but for that high cost. This is largely due to the machinery imported by this industry from Taiwan, Korea and Germany. This machinery can be made available from India at competitive rates. Textiles: Pakistan has competitive advantage in cotton textile products which need to be revitalized. India, on the other hand, has an upper hand in silk and other synthetic fibre. The opening up of trade will help Pakistan to acquire textile chemicals R. V. Kanoria, President, FICCI, addressing a particularly if tariffs were to be and other inputs at cheaper rates and business meeting. lowered. India’s comparative advan- thus to make their products more tage lies in its lower steel price competitive in international market. together with scale economies. Petroleum Products: As of now, Tea: Pakistan has recently emerged Pakistan has banned imports of Trade in agriculture as the largest market for exports of Indian petrol. Though it allowed diesel between India and Indian tea. India’s share of Pakistani imports in 2009, due to preferential tea market has increased in recent prices offered by Pakistan’s allies such Pakistan till date has times, however still remains low. as Kuwait, supplies from India did been crisis driven. Pakistan has been sourcing most of not really take off. its tea from Kenya. There is immense However, India has offered to However, if a robust potential for Indian tea in the export petrol, diesel, and aviation regulatory mechanism Pakistani tea market. turbine fuel, fuel oil, besides sulphur, polyethylene and polypropylene to is put in place in both Pharmaceutical: Considering that the neighbour. Pakistan is currently importing these products from other countries, agriculture Indian pharmaceutical products are countries. Imports from India will be cheaper than Pakistani products, it trade could well become would certainly make a difference advantageous for Pakistan as it will be saving on the freight cost since market driven. to the common citizen in Pakistan. several Indian refineries are located In turn, this would help Indian pharmaceutical products including close to the India-Pakistan border. bulk drugs and formulation to sell The refiners who will benefit include in large volumes in geographically Indian Oil Corporation, Reliance proximate markets besides impacting Industries, Essar Oil, and the soon positively on industrial growth. to be fully commissioned refinery at Bhatinda. Textile Machinery: In Pakistan, there is no high-tech textile machinery Information Technology: India has industry. The opening of trade with established itself as a major player in India would help Pakistan to acquire the information technology segment. this machinery directly at much The software industry in Pakistan lower prices rather than high cost is still in its nascent stages though machinery from Germany. Recently, it has a huge potential to emerge Pakistan has allowed the imports as a major software exporting and of Textile Machinery from India. training centre. India and Pakistan However, all categories of Textile could enter into joint ventures to Machinery and its components are tap the global market for software. still not allowed. The prospects for success in this sector seem to be good. As the basis Chemicals: Import of cheaper of India’s comparative advantage in chemicals and dyes from India IT – low cost and qualified English- 20 || FICCI Business Digest || February 2012
  11. 11. COVER STORY Afghanistan to get its share of 38 million standard cubic meters a day of gas through the pipeline, while Islamabad will pay ferrying charges to Afghanistan. Iran-Pakistan-India (IPI) pipeline project is a 2700 km pipeline from Iran’s South Pars fields in the Persian Gulf to Pakistan’s major cities of Karachi and Multan and then further to Delhi, India. Iran is offering to cover 60 percent of the construction costs of the pipeline. A land-based pipeline would be four times cheaper than any other option, even after taking into account transit fee payments to Pakistan. Pakistan could earn transitJaved Akhtar Bhatti, President, Rawalpindi Chamber of Commerce presenting a memento to fees from the pipeline and also wouldR. V. Kanoria, President, FICCI. be able to purchase natural gas from the pipeline. Pakistan is expected to earn about $200-$500 millionspeaking technical personnel – is entertainment industry can be tapped in transit fee. India would benefitreplicable in Pakistan. In terms by encouraging joint productions. from diversified sources of pipelineof infrastructure requirements Removing the ban on screening gas and lower dependence on moreon Pakistan too, the IT sector is movies would benefit both countries. expensive liquid natural gas (LNG).relatively less demanding, both in Exchanging broadcasting rights to Even with LNG prices dropping,terms of sheer scale of investment and telecast each other’s programmes industry sources believe that therechallenges of security management. on television is yet another trade would be a significant cost advantage, The Indian IT training market opportunity for the two countries. especially to a pipeline from Iran.has also grown significantly. Several Removal of visa restrictions would Both these projects present a win-training institutions such as NIIT, encourage individuals to participate in win opportunity for both India andAPTECH and SSI have set up each other’s entertainment industries. Pakistan and can go a long way intraining centers in many countries meeting the energy requirementsincluding South Asian countries. The Energy Benefit: The greatest in one of the world’s fastest growingIndia and Pakistan could enter into economic benefit of trade relations regions. Energy cooperation betweencollaborative arrangements to set up between India and Pakistan would India and Pakistan would have atraining institutes in Pakistan which occur in the sphere of energy stabilizing effect on the region aswould enable enlarge the technical cooperation. India is one of the most a whole.workforce in Pakistan). rapidly growing energy markets In recent times Pakistan has been in the world and will be able to facing a major power shortage, fromTourism: Tourism holds immense absorb new sources of supply as they both gas and electricity sources.potential for the two countries. materialize in the region. Pakistan’s In this regard India and Pakistan areA liberal visa regime as well as potential role in fulfilling this need considering the option of electricityimproved transport linkages would is not as a supplier but as a potential trading. The first meeting of thego a long way in improving tourism transit route for energy from Iran Joint Group of Experts to examinebetween the two nations and Central Asia. This would require feasibility of trade of electricity was construction of one or more new pipelines, a major capital investment held on 20th October 2011 at NewHealth: Pakistani patients could alsocome to India for treatment. Easing that makes sense only if the political Delhi. Central Electricity Authorityvisa restrictions would greatly help stability and economic feasibility of and Power Grid Corporation of IndiaPakistanis to come for treatment. So the project can be counted on. limited/Power System Operationfar, only a handful of Pakistani patients The economics look very Corporation Ltd have been designatedhave visited India for treatment. promising. The two major proj- as the nodal technical agencies fromRemoval of visa restrictions for ects under consideration for a the Indian side. They are interactingpatients, and for doctors would very long period of time are the with National Transmission andgreatly facilitate such trade. Iran-Pakistan-India (IPI) pipeline Dispatch Company Ltd of Pakistan and Turkeministan-Afghanistan- to work out the optimal technicalEntertainment: The common Pakistan-India (TAPI) pipeline. solutions for grid connectivityculture and language between India The TAPI pipeline project is between both countries. A broadand Pakistan facilitate immense approximately pegged at a cost of understanding has been reached onopportunities for trade and coope- USD 7.6 billion. As per the latest possible grid connectivity betweenration in the film, television and arrangement agreed on - India Amritsar-Lahore to enable trade ofmusic sector. This potential in the will pay transit fee to Pakistan and up to 500 MW of power. February 2012 || FICCI Business Digest || 21
  12. 12. What are the benefits of FICCI membership? Who should I contact at FICCI regarding sectoral queries? What are the benefits of FICCI’s B2B services and how can I avail this service? What are the various services offered by FICCI? Does FICCI have an impressive membership? Will this membership be applicable worldwide?members’ helpline Members who have questions, concerns or queries related to matters of policy or any FICCI activities should contact : Sudeshna Banerjee Deputy Director Toll Free: 1800-11-3128 Federation House, 1 Tansen Marg New Delhi 110001