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    Emerging Trends in India-Pakistan Trade

    Taneja, Nisha; Bimal, Samridhi; Sivaram, Varsha | August 2018
    Abstract
    Significant measures were undertaken by India and Pakistan to liberalize trade in 2012. In particular, Pakistan’s policy to permit all items to be imported from India except for a few items was expected to bring about a quantum increase in India’s exports. Similarly, India’s efforts to address Non-Tariff Barriers (NTBs) were expected to lead to an increase in Pakistan’s exports to India. This study focuses on understanding whether there has been substantial increase in trade since 2012 and whether there has been a change in commodity composition of traded items. It also examines whether new items have entered India’s export basket and assesses whether these items indicate a shift from informal to formal trade. The study identifies key trade policy reform measures undertaken by the two countries which are likely to impact India-Pakistan trade. These measures include regulatory duties imposed by Pakistan and Goods and Service Tax (GST) adopted by India. The key finding of the study is that there has been a limited impact of trade liberalization on the volume of trade between the two countries. The shift from positive list to negative list has not resulted in any major increase in new exports. The share of new commodities exports in total exports has showed a rise of only 9 percentage points between 2012-13 and 2016-17. However, the trade basket has witnessed a diversification in terms of number of new items traded. The study finds that there is evidence of items shifting from informal to formal channels. The study also finds that the imposition of regulatory duties and compliance of standards has not affected India’s exports to Pakistan. The study concludes by making policy recommendations that could enhance and facilitate bilateral trade between India and Pakistan.
    Citation
    Taneja, Nisha; Bimal, Samridhi; Sivaram, Varsha. 2018. Emerging Trends in India-Pakistan Trade. © Indian Council for Research on International Economic Relations. http://hdl.handle.net/11540/8594.
    Keywords
    Project Evaluation & Review Technique
    Operations Evaluation
    Evaluation
    World Trade
    Trade Volume
    Trade Promotion
    Trade Flows
    Trade Development
    Patterns Of Trade
    Resources evaluation
    Input output analysis
    Import volume
    Export volume
    Export Development
    Economic agreements
    International market
    Import policy
    Export policy
    Participatory monitoring and evaluation
    Participative management
    Foreign trade routes
    Trade routes
    Foreign trade and employment
    Tariffs
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    Citable URI
    http://hdl.handle.net/11540/8594
    Metadata
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    Working_Paper_363.pdf (732.9Kb)
    Author
    Taneja, Nisha
    Bimal, Samridhi
    Sivaram, Varsha
    Theme
    Evaluation
    Trade
     
    Copyright 2016-2020 Asian Development Bank Institute, except as explicitly marked otherwise
    Copyright 2016-2020 Asian Development Bank Institute, except as explicitly marked otherwise