TRADE RELATION SHIP BETWEEN INDIA AND PAKISTAN
Trade between India and Pakistan is not a new thing, this is as old as both countries, but the trade between India and Pakistan is not so significant if we compare it with their size of economy. From 1947, the higher export of Pakistan was 30% and import from India 10%. After that both countries reduced their up to 5%. In 1990, the trade is improving up to $85 million, if we compare with previous two decades. In the same previous period the imports are also so significant. The Government of Pakistan granting status of MFN (Most Favored Nation) to India which may be helpful to breakdown all bearers which are faced from past few years by both countries. Both countries are agreed upon to build integrated check post (ICPs) the Atari /Wagha border to facilitate the trade in both countries which was decided in the meeting held in Pakistan .
According to the agreement both (ICPs) between India and Pakistan would be operational from October of this year which may be helpful to reduce the hinders between India and Pakistan about 200 trucks send from Pakistan to India and the same number of truck are came in Pakistan through the joint check post.
The comprehensive bilateral trade talk starts from April 2011,between Pakistan and India .Pakistan Government agreed to give the MFN status to India which act as a tool to breakdown all constraints which are faced both countries. It was also decided to cancel its positive list of items that allows India to export and going to replace it with a negative list of items which are clearly prohibited .Similarly, Pakistan allows to import a list of 1946 items from India .A specific number of items would be prohibited and other every thing permitted to import .This can result the expansion the scope of trade relationship between India and Pakistan .This would be a great opportunity for both countries business man to get access to the markets of each other.In 2009-2010 the bilateral trade between India and Pakistan was US$ 1.85 billion .This would be increased significantly from granting the status of MFN.
There is a great trade potential of Pakistani vegetable and fruits with India ,because India is a pure vegetarian country .Trade between India and Pakistan can be increased to the extent of wonder. We can make our land fertile if we given each cultivable area of land to give for the production. Chief executive officer of Khan Trading Company Khalid Khan said that, India could become a largest market for Pakistani keno. Pakistan can export 400,000 tones of Keno to India, annually. This export could be increased up to 1.2 billion UD dollars in the next two years.
We can not refuse this fact that the Indian farmers are more educated than Pakistani farmers. He takes decision very effectively and considered time very important. India gains the appreciable famous in IT industry in International business community. This is the reason the Indian farmers are more successful. If we promote more relationship with India and consistent can be beneficial for Pakistan to promote high tech farming in Pakistan with low cost and effectively .cost of production in Pakistan is high. It is important for government of Pakistan to put attention on the relation with India and not think it as enemy, and considered as friend (MFN) to promote trade relationship in agriculture section.
TRADE RELATIONSHP BETWEEN INDIA AND EUROPE:
India is an important 3rd largest emerging economic power of the world. India is a very significant trade partner of the EU.The growth rate in India is between 8 and 10% which is the fastest emerging economy of the world. There are some substantial type of tariff and non tariff barriers which hinders the free trade between India and EU.The India and EU are more hopeful from the negotiations which are conducted in 2007.that the bilateral trade of goods and services and investment would be increase through the free trade agreement (FTA).The targets of negotiations would be achieved in the earlier of 2012.EU goods which are exported to India in 2010 was 34.7 billion euro .EU goods which are imported from India in 2010 was 33.2 billion euro.EU services which are exported to India in 2010 was 9.8 billion euro. EU services which are imported from India in 2010 was 8.1 billion euro.The outward investments from EU to India in 2010 was 3.0billion euro.The inward investment from India to EU in 2010 was 0.6billion euro.
The trade between EU & India increased tremendously from 28.6 billion euro in 2003 to 67.9 billion euro in 2010.In 2010 the EU investment in India was more than tripled from 759 million euro in 2003 to 3 billion euro in 2010.The trade in commercial services was tripled from 5.2 billion euro in 2002 to 17.29 billion euro in 2010.India imposed many restrictions regarding the testing & certification of large number of procedures, import licensing and very difficult custom procedures.
In 2004 India becomes the strategic partner of EU in 2005 .The EU –India joint action plan ,which purpose is to realize full potential of partnership in the areas of interest of India and EU.On October ,2006 the parameters for free trade agreement (FTA) are reported in the EU-India high level trade group, which purpose is to assess conclusive free trade agreement between EU and India .India and EU wants to enhance the bilateral trade in both goods and services & investtment.EU also provides technical assistance regarding trade.In 2002-2006 ,the country strategy paper funded 13.4 million euro which are used through the trade & investment development programs. A stable environment strengthen the trade between India and EU which results from the successful Doha round.
TRADE RELATIONSHIP BETWEEN INDIA AND UNITED STATES:
From two consecutive fiscal years the bilateral trade between India and US is decreased from $ 41.80 billion in 2007-2008 to $36.51 billion in 2008-2009 and $36.51 billion in 2009-2010.As a proportion if Indian total foreign trade the bilateral trade has been same level shrink. Decrease from global economic crisis in 2008 to 7.8% in 2009-2010.The decrease in trade results from global economic crisis in 2008,which creates contraction in the US economy.On 29th June, 2011 during the 2nd India-US economic partnership meeting ,in which both countries are committed to make stronger trade relation by both countries. It is hoped that India would be top 10 trade partners of US in the future .Currently ,India is the 12th trading partner of US’s .US is the 3rd trading partner after UAE and China. U.S. Treasury Secretary Timothy F. Geithner said that the trade restrictions in India regarding retail, financial & manufacturing sector is a big bearer in the way of strengthen the trade relations between both countries.
Major exports from US to India are nuclear reactor,aircrafts,electric machinery, gems and jewellary,fertilizers and equipment etc,which are 6.11% of the Indian total imports. In 2008-2009 the import of India from US is reduced up to 11.89%.In 2007-2008 the import of India from US were $21.02 billion which were reduced in 2008-2009 up to 18.56 billion dollars.
Exports from India to US are 11.44% of total exports of India .The major exports of India are articles of iron or steel ,gems and jewellary ,electrical machinery and equipment ,clothing items and apparel etc.
In the fiscal year 2008-2009 merchandise exports from India to US increaser up to 2.02% in 2008-2009,which is $ 21.14 billion if we compare it with the previous year 2007-2008 which was $ 20.73 billion dollars.
