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Terrorism linked to 60% cut in Indo-Pak trade
India-Pakistan trade is likely to witness a 60 percent decline in fiscal year 2009-10 as recent terror attacks and deteriorating relations have scared Indian exporters from doing business with Pakistani businessmen. Cause, meet effect. Effect, cause. A survey conducted by the Federation of Indian Chambers of Commerce and Industry (FICCI) amongst Indian exporters and importers doing business with Pakistan has revealed the overall trade, presently at a little over $2 billion, is likely to fall to $900 million in the current year. Companies who participated in the survey reported there was great unwillingness among Indian exporters to travel to Pakistan to conclude even finalised deals. According to the report, the tumultuous situation in Pakistan has created a "fear psychosis" amongst Indian exporters and importers who say cross-border travel has been greatly reduced. The survey notes that "wait and watch" seems to have become the strategy of most companies. However, The Statesman newspaper notes that while bilateral trade might be reducing, some Indian exporters and importers are taking advantage of third-country channels such as Dubai and Singapore, to service the Pakistani market. The survey notes the key sectors that would see a significant decline in cross-border trade with Pakistan include textile and apparel, textile machinery, cotton, agricultural products, particularly cereals, steel and chemicals. Posted by: Fred 2009-03-10 |
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