Indian industry today expressed hope the newly elected government in Pakistan would further increase two-way trade and investments between the two countries, helping bring peace to the region.
"The return of Nawaz Sharif, who wants to kick-start the revival of the Pakistani economy, is a fresh opportunity for Islamabad to cement business and trade ties with India," said D S Rawat, Secretary General, Assocham.
Rawat said India and Pakistan must increase official trade and set a target of at doubling bilateral trade in the current financial year. "While we urge Pakistan to grant us the Most Favoured Nation (MFN) status, New Delhi should ensure that the trade balance, which is largely skewed in favour of India should be corrected," he added.
Trade between India and Pakistan stood at $2.34 billion in financial year 2012-13.
Rawat said Assocham's recent study revealed that bilateral trade between India and Pakistan might clock over $12 billion by 2015, if Pakistan accorded MFN status to India.
Arvind Pradhan, Director General, Indian Merchants' Chamber, asserted that democratic rule in Pakistan would strengthen trade flows between India and Pakistan. "There is a strong possibility of doubling the trade from the current level of around $ 2 billion in a short span of time. With the coming of Nawaz Sharif, we strongly feel that MFN status will be accorded to India. However, that is not the only goal, as non tariff barriers from both sides must be reduced to increase the flow of trade," he said.
"The more economic stake we create in Pakistan, the better it is for normalising relations and bringing people together," said Didar Singh, Secretary General, Federation of Indian Chambers of Commerce and Industry.
However, C S Deshpande, Director (Research), World Trade Centre, Mumbai cautioned that no two-way trade and investment could progress significantly unless Pakistan granted MFN status to India. "We welcome the change in government in Pakistan. We believe that a substantial rise in trade and investment can boost peace and in both countries. But the onus in strengthening the economic dialogue with India clearly lies with Pakistan," he said.
India exports mainly sugar, sugar confectionary, cotton, man-made filament yarn, organic chemicals, spices, tea, petroleum products, iron and steel to Pakistan. It imports fruits, vegetables, mineral fuels, organic and inorganic chemicals and woollen products.
