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Trade in Services and South Asia: An Aggressive Agenda

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  • Rupa Chanda

Abstract

Since 1996, the trade between India and Pakistan has been at much higher levels than before. In that year India granted MFN status to Pakistan. India and Pakistan are Members of the South Asian Association for Regional Co-operation (SAARC), they have exchanged tariff concessions under the South Asian Preferential Trading Arrangement (SAPTA) Rounds. An account is given about the different sectors in which trade between the two countries is taking place and their future possibilities. Data was collected from firms trading with Pakistan. Such firms were identified from websites that provide information on trading companies in India. Transportation links between the two countries are weak. The sea route between Mumbai and Karachi has been the only consistent operational link and the only operational land route is the rail link across the Attari/Wagah border. The survey revealed that problems related to delays and clearances on the Mumbai-Karachi sea-route were the same as on any other sea-route. Major problems on the land route are related to availability of rail wagons, restrictions on wagon balancing and lack of EDI facilities. The two countries should work together to enhance and facilitate trade and investment. Issues relating to Indo-Srilanka and Indo-Nepal Free Trade Agreement are depicted which are useful for policy makers.

Suggested Citation

  • Rupa Chanda, 2007. "Trade in Services and South Asia: An Aggressive Agenda," Working Papers id:936, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:936
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    File URL: http://www.eSocialSciences.com/data/articles/Document1542007420.3755457.pdf
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    References listed on IDEAS

    as
    1. Rashmi Banga, 2005. "Critical issues in India's services-led growth," Indian Council for Research on International Economic Relations, New Delhi Working Papers 171, Indian Council for Research on International Economic Relations, New Delhi, India.
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