Given the immense potential and the peace dividend that comes byencouraging bilateral trade, discuss how India and Pakistan should bridge the gap between their actual and potential trade. (200 words)
Refer – The Hindu
Enrich the answer from other sources, if the question demands.
IAS Parliament 6 years
KEY POINTS
· Value chain – In a highly integrated and interdependent global economy, regional value chains provide big opportunities for India and Pakistan.
· They could diversify their exports and imports and intensify their integration into the global economy for the greater benefit of all.
· Developing bilateral, product-specific, regional value chains in sectors such as “textile, clothing, sports goods and surgical equipment” hold the key.
· Alleviate fears – It is important to alleviate fears, misconceptions and the trust deficit in the trading community.
· B2B contact – Business-to-business linkages need to be formed and strengthened between actual traders.
· While this can be initiated at the level of product-specific industry associations, this must also be taken up by national chamber associations.
· SAARC visas – Though announced in 2014, there has been a delay in its implementation.
· South Asian Association for Regional Cooperation (SAARC) business traveller visas must be implemented in practice.
· Political level Engagements – It is important to recognise that economics and politics are not completely disconnected from each other.
· Engagements at the political level will be an important factor to reinforce economic ties between the two countries.
· There also needs to be focus on other issues such as key items in the textiles and clothing sector, border infrastructure and security, improved connectivity by sea and air, enhanced people-to-people contact and educational exchanges.
