Pakistan and India Trade Potential

Abstract

South Asian region could not achieve prosperity and growth until Pakistan and India work together for the development of trade relations. Their cordial trade links would open the gate of opportunities for all. This is only possible if rivalry is removed and supportive environment for trade is introduced. This article is addressing the question whether there is any potential for trade between Pakistan and India or not? An affirmative answer to this question encourages both giants to divert their productive energies towards economic interdependence and regional uplift. Pakistan and India have the potential of trade, though trade has both characters of competitiveness and complementarity while both can lead to prosperous trade relations if sincerely pursued. Competitiveness would result in efficiency of industries and production while complementarity, especially, the emerging one would prove to be an impressive instrument of development and widening of relations.

An inquiry into the Pakistani statecraft in tackling COVID-19

“…The Government of Pakistan provided India with basic medical supplies, including ventilators, personal protective equipment, digital X-ray machines, and other related equipment. The international community appreciated this; as Michael Kugelman, deputy director of the Asia program, said: “This is a very generous and significant offer, not just because it's offering to provide supplies to its enemy, but because Pakistan itself is facing a rapidly growing COVID surge” (Gul, 2021). The basic aim of the Pakistani government was to achieve foreign policy objectives: 1) to improve Pakistan's image in the eyes of Indian citizens, 2) to play a leadership role in the region, and 3) to assure the world that humanitarian issues require responses that go beyond political considerations.…”

Analyzing the Significance of Pakistan-India Trade

“…Trade among Pakistan and India is primarily in foodstuffs rather than factory-made or intermediate items. The expansion of trade will indeed advantage consumers by offering lower-cost goods and providing cheap raw material availability to production plants and producers (Gul et al, 2018). The former government under Prime Minister Imran Khan stated that they were on the same page as the military, particularly when it comes to relations with India.…”

“…Both countries' financial outlooks grew as a result of such measures. When both countries began a dialogue on political and economic matters in 2004-2005, commodity commerce between Pakistan and India began to diversify (Gul et al, 2018).…”

“…Because Pakistan requires natural gas for home use, it is preferable to build a combined connection to send gas to the two countries rather than separate facilities. Pakistan's position in the energy industry is to serve as a possible transit point for Indian energy consumption via Iran and Central Asia, instead of as a supply (Gul et al, 2018). Pakistan is expected to receive 50 cents for every million cubic feet of gas transported a day, or $600 million a year, in transit fees from India (Tribune, 2012).…”

“…Pakistan and India have various comparative advantages in the manufacture of vehicle components; their combined endeavors would increase supply and demand in this industry while also increasing job possibilities. In addition to economic gains, this industry can help to maintain harmony among neighbors, as the car industry achieved in the case of the US, Mexico, and Canada (Gul et al, 2018).…”