Business relations between India and Pakistan are looking bright as bilateral trade between these countries grew by an impressive 74% last fiscal. As per commerce ministry statement, the business grew to $600 million from $344 million the previous year.
"It is expected that this positive trend will continue, although it is difficult to quantify the actual potential," the statement said, adding that efforts were also underway to boost bilateral merchandise trade between the two countries.
A joint study group led by the commerce secretaries of the two sides is seeking to address issues like non-tariff barriers and customs cooperation and have set up two working groups to come up with concrete proposals.
It seems, Pakistan has added 83 items to the positive list of imports that are permitted from India, expanding it to 771 items. Also they are considering India's request to include some more items.
The Indian ministry of textiles conducted the study, following complains from Islamabad on India's imposition of specific duty in textile and clothing, which inhibits meaningful market access to Pakistani goods. The study says India imposes specific duties on 271 tariff lines in textile that can be classified into four categories - minimal threat, mild threat, medium threat and severe threat.
Recommendations are made for removal of specific duty on minimal threat category immediately and on mild threat category within three years time. These relaxations will boost imports from Pakistan, officials said.
