India Pakistan Trade Normalisation

This book explores the unfinished India–Pakistan Trade normalisation agenda (building upon the themes covered in the book “India-Pakistan Trade: Strengthening Economic Relations” published by Springer in 2014) and discusses the steps that must be undertaken in order to move the bilateral engagement forward. Given the commencement of bilateral state-level talks and the Indian government’s emphasis on South Asian integration, it adds impetus to the trade liberalisation process, while also providing essential recommendations for policymakers in both countries. The unfinished agenda faces obstacles such as the list of items for which export from India to Pakistan continues to be restricted; lack of land borders and seamless cross-border transport services, which hampers the realisation of trade potential; negative reporting in the media, which influences traders’ perceptions; and the continued occurrence of informal trade resulting from inadequacies of formal trade relations. The book examines various sectors, including the agricultural, textiles, automotive and pharmaceutical industries, given their predominance on the list of restricted items for bilateral trade. It also covers studies on unconventional and under-researched themes concerning informal trade, informational barriers to India–Pakistan trade, and opening new land borders for trade – all of which can play a facilitating role in realizing the untapped trade potential between India and Pakistan. The book also includes the second round of the India–Pakistan trade perception survey, which identifies impediments to India–Pakistan bilateral trade and assesses the change in traders’ perceptions since the first round of the survey, which was published in 2014.

Examining the implications of recent important developments, the primary aim of this book is to bridge the gaps in existing literature on India-Pakistan economic engagement and to examine various aspects of the trade normalization process. The book includes familiar themes of India-Pakistan bilateral trade in goods and services, providing new insights into the potential for trade and the challenges involved in realizing it. The respective chapters examine the current trade trends and identify the possible sectors for bilateral FDI flows between the two countries, which could help forge deeper economic ties between them. In light of India’s changed investment policy, this analysis is pertinent for investors and policy-makers alike. The book also includes chapters on a variety of unconventional subjects, such as estimating the levels of informal trade, an analysis of a trade perception survey and identifying trade potential using a CGE modeling approach. Further, a number of sectors have been identified for in-depth analysis, including sports goods, healthcare and energy. These sector-based analyses reflect the gap between current levels of trade in the selected industries and the possible trade potential. The studies identify key tradable commodities in the health and sports industries, as well as opportunities for trading in energy. The book thus provides readers with a deep understanding of the process of normalizing economic relations and enhancing bilateral trade at the micro and macro levels, on the basis of which the authors subsequently provide recommendations for policymakers.

This trade perception survey was undertaken to understand how stakeholders engaged in India-Pakistan trade perceived impediments faced by them in realizing the trade potential between the two countries. Based on an analysis of information collected in the survey on six indicators--awareness of trade policy, ease of meeting standards, market access, business facilitation, customs and documentation, and infrastructure at ports--the study recommends policy options that the Indian and Pakistani governments could consider to reduce impediments. As India and Pakistan are in the midst of a trade normalization process, the recommendations made would help the two governments address the impediments highlighted in the study.

Track Two Diplomacy between India and Pakistan studies the nature and context of providing an alternative platform for conflict resolution between the two countries. Considered one of the most intractable conflicts in the world, the India-Pakistan conflict has been defined by casualties, religious extremism, and the looming threat of war. With the conflict playing out against the backdrop of many nationalisms, official Track One diplomacy remains insufficient. The author analyses the role of Track Two diplomacy when official diplomacy remains confined and sensitive to their respective official positions as well as the contribution of maintaining various communication lines intact when official channels are suspended and inaccessible. In this context, this book explores citizen-led diplomatic efforts, probing the economic and ideological forms of power that influence this mode of diplomacy outside governmental channels. The book is a general evaluation of the Track Two process in terms of its achievements, challenges and failures vis-à-vis India and Pakistan. An original contribution towards the development of a conceptual understanding of Track Two diplomacy, this book will be of interest to researchers studying International Relations, Foreign Politics, South Asian Politics, with particular emphasis on India - Pakistan relations.

Historically, the relationship between India and Pakistan has been mired in conflicts, war, and lack of trust. Pakistan has continued to loom large on India’s horizon despite the growing gap between the two countries. This book examines the nature of the Pakistani state, its internal dynamics, and its impact on India. The text looks at key issues of the India-Pakistan relationship, appraises a range of India’s policy options to address the Pakistan conundrum, and proposes a way forward for India’s Pakistan policy. Drawing on the author’s experience of two diplomatic stints in Pakistan, including as the High Commissioner of India, the book offers a unique insider’s perspective on this critical relationship. A crucial intervention in diplomatic history and the analysis of India’s Pakistan policy, the book will be of as much interest to the general reader as to scholars and researchers of foreign policy, strategic studies, international relations, South Asia studies, diplomacy, and political science.

The India-Pakistan rivalry is one of the five percent of international conflicts that has been labeled as intractable. Cohen draws on his varied experiences in South Asia as he develops a comprehensive theory of why the dispute is intractable and suggests ways in which it may be ameliorated.