Are Indo-Pakistan Trade Relations Really Improving?

Abstract

India and Pakistan are the two most vital countries in the South Asian region. The growth and development of South Asian continent would depend on the growth and development in these economies. The most contributory factor has been creation and facilitation of trade between two south Asian giants. These days, the growth and development of trade between the two countries is not according to the potential and opportunities these economies are having. Trade between
India and Pakistan increased from a modest level of US $ 144 million in 2001 to US $ 2.7 billion in 2011. Similarly, the informal trade between both the nations is estimated to be nearly US $ 10 billion. This is an undisputed fact that real fruits of growth and development in South Asian region could not be reaped out unless and until India and Pakistan put down their heads and must work for the creation and facilitation of trade between two economies. In the current year, some positive measures are being taken by India and Pakistan to enhance the degree of trade relations which could prove to be beneficial for both the nations. This paper reviews the emerging trends in trade relations and identifies the challenges which both the countries could face in creation and facilitations of trade among themselves. The paper further suggests an action plan for the promotion of trade relations between India and Pakistan.