New Delhi, July 19 (Inditop.com) The Associated Chambers of Commerce and Industry of India (Assocham) and the Karachi Chamber of Commerce and Industry (KCCI) have set up special contact groups to boost bilateral trade. The move is significant as a substantial chunk of trade between the two countries now takes place through third countries.
Assocham has been invited by KCCI to hold business-to-business initiatives and a small group under D.S. Rawat, Assocham secretary general, is scheduled to visit Karachi to continue negotiations.
Assocham president Sajjan Jindal said: “The chamber strongly believes that relations between the two neighbours must improve and a beginning has to be made — both countries cannot continue to carry past baggage at the cost of their mutual growth and well-being.”
The proposed roadmap of the Assocham-KCCI group suggests creation of a dedicated freight transshipment facility along the land route through the Wagah border.
At present passenger traffic and freight traffic are handled at a single terminal leading to delays for goods traffic. Both chambers have suggested some incentives to boost trade in non-traditional items.
The items that both the chambers have identified for bilateral trade include commodity supplies, especially sugar and wheat, tea, medicines, gems and jewellery, the newly-launched car Nano and other cost-effective cars.
Apart from sugar, cement, wheat and dry fruits which are traditionally identified items for exports to India, Assocham feels that footwear, leather products, sports goods and plastic wares can be also imported from Pakistan.
According to the chamber, India-Pakistan trade recorded an annual growth of 19 percent recently and the total volume reached $2 billion in 2008. But there is a tremendous potential yet to be tapped.
The Assocham study predicted a 40-50 percent rise in bilateral trade as a possible target.
“Presently, more than 25 percent of total Pakistani imports of Indian origin goods take place through Dubai and Singapore. Facilitating direct trade would be beneficial to both sides, and the trade level would jump dramatically,” the study said.
Both the chambers have suggested relaxation in travel restrictions for bona fide travellers and increased frequency of train and bus services, and attracting more patients from Pakistan for specialised treatment in India under a new scheme.
The Indian chamber has also sought a new scholarship scheme for Pakistani students and researchers for higher courses.
