India’s Informal Trade with Pakistan
Taneja, Nisha; Bimal, Samridhi | July 2016
Abstract
Informal trade continues to thrive between India and Pakistan despite recent measures undertaken by the two countries to normalize trade and reduce transport impediments. This calls for an in-depth analysis of India’s informal trade with Pakistan. This study (i) identifies factors determining informal trade, (ii) prepares estimates of India's informal trade with Pakistan (iii) examines the modalities of informal trade (iv) analyzes the transaction cost incurred in trading formally and informally and (v) proposes recommendations needed to shift informal trade to formal channels.
The analysis, carried out on the basis of an extensive survey conducted in India and Dubai estimates informal trade to be US$ 4.71 billion. Of this, India’s exports to Pakistan are estimated to be USD 3.99 billion and imports from Pakistan USD 0.72 billion. The study concludes that informal traders in India and Pakistan have developed efficient mechanisms for contract enforcement, information flows, risk sharing and risk mitigation. Further, even though the transaction costs of trading in the informal channel are significantly higher than the formal channel, traders prefer to trade through the informal channel since it is more efficient than the formal channel. An important policy implication is that unless the environment of the formal trade improves, informal trade will not only continue to coexist with formal trade, but it will also impact its potential magnitude in the coming years.
Citation
Taneja, Nisha; Bimal, Samridhi. 2016. India’s Informal Trade with Pakistan. © Indian Council for Research on International Economic Relations. http://hdl.handle.net/11540/7358.Keywords
Government Policy
Regional Organization
Regional Plans
Economic integration
Regional Development Bank
Preferential tariffs
International negotiation
Protectionist measures
Access to markets
Economic agreements
International trade law
Regional integration
Trade relations
Regionalism
Regional Economy
Regional Trading Arrangements
Regional Trade Integration
Regional Economic Integration
Regional Cooperation
Interregional Cooperation
Trade Disputes
Trade Barriers
Regional economics
Regional planning
Regional disparities
Interregionalism
Regional economic disparities
Regional economic blocs
Industrial arbitration
Show allCollapse
Citable URI
http://hdl.handle.net/11540/7358Metadata
Show full item recordRelated items
-
Reimagining India’s Urban Future: A Framework for Securing High-Growth, Low-Carbon, Climate-Resilient Urban Development in India
Tewari, Meenu; Aziz, Zeba; Cook, Mitchell; Goldar, Amrita; Ray, Indro; Ray, Saon; Roychowdhury, Sahana; Unnikrishnan, Vidhya (Indian Council for Research on International Economic Relations, 2015-08-30)India is at the cusp of a major urban transition. In less than twenty years, India’s urban population is expected to nearly double from 377 million today to over 600 million. Indian cities already contribute an estimated two-thirds of India’s GDP, and this number is expected to rise to 75% by 2031. With 70% of all new jobs expected to come from urban areas, accommodating a growing urban workforce ...India is at the cusp of a major urban transition. In less than twenty years, India’s urban population is expected to nearly double from 377 million today to over 600 million. Indian cities already contribute an estimated two-thirds of India’s GDP, and ... -
India’s Act East Policy: Facilitating India-Myanmar Border Trade
Naing, Nisha Taneja Tin Htoo; Joshi, Sanjana; Singh, Thiyam Bharat; Bimal, Samridhi; Garg, Sakshi; Roy, Riya; Sharma, Manali (Indian Council for Research on International Economic Relations, 2019-07-30)As India seeks to strengthen trade, investment, and other forms of economic cooperation with the Association of South East Asian Nations (ASEAN), Myanmar is an essential strategic partner, since it is the only ASEAN nation with which India shares both land and maritime borders. As a ‘gateway’ to South East Asia, Myanmar is also vital in terms of economic development for India’s North East Region ...As India seeks to strengthen trade, investment, and other forms of economic cooperation with the Association of South East Asian Nations (ASEAN), Myanmar is an essential strategic partner, since it is the only ASEAN nation with which India shares both ... -
Facilitating India’s Act East Policy: Gap Analysis in Infrastructure at Land Custom Stations in the North Eastern Region of India
Taneja, Nisha; Vashisht, Pankaj; Joshi, Sanjana; Acharya, Loknath (Indian Council for Research on International Economic Relations, 2021-11-30)The study has identified infrastructure gaps and assessed the quality of existing infrastructure at all the Land Customs Stations (LCSs) and Integrated Check Posts (ICP) in the North Eastern Region (NER) of India and North Bengal. The study has also covered four ICPs outside NER - Jogbani, Raxaul, Petrapole and Attari to benchmark the availability and quality of trade infrastructure in NER. The ...The study has identified infrastructure gaps and assessed the quality of existing infrastructure at all the Land Customs Stations (LCSs) and Integrated Check Posts (ICP) in the North Eastern Region (NER) of India and North Bengal. The study has also ...