Bi-Lateral Trade between India and Pakistan: Present Scenario and Future Opportunities

Partition of Indian sub-continent arranged a system in support of bi-lateral trade co-operation amid India-Pakistan. Initially both countries were extremely dependent on each other for trade. Afterwards India and Pakistan took alternative ways to minimize interdependence on each other for trade. Establishment of SAARC and SAFTA agreement has played a crucial role in increasing the trade between India and Pakistan. Economic gains from the bilateral trade could be an important way for resolving conflicts between the two countries. India encompasses an available export probability of dollar three and half billions for selected items. Pakistan has an additional trade potential of dollar three billions for selected items of which almost fifty per cent can be attributed to cotton alone. The process of trade normalize is anticipated to open huge trade opportunities for India and Pakistan.