At present direct trade between the two countries is $ 2.7 billion and the indirect trade routed through third country is about $ 2.5 billion. Most of the indirect trade are routed through the Gulf countries, particularly UAE.

The recent visit of the high-level Pakistan delegation led by its Commerce Minister Makhdoom Muhammed Amin Fahim has increased the confidence of building up bet trade relations between the two countries. Fahim and his Indian counterpart pledged to increase the level of India-Pakistan bilateral trade to the level of $ 6 billion within the next three years, given the present quantum of both direct and indirect trade between the two countries.

While the governments of the two countries have set the target of $ 6 billion for bilateral trade within next three years, the Indian business leaders have become more upbeat and say that it can be increased to the level of $ 10 billion in next six years. They have suggest an early free trade agreement (FTA) between India and Pakistan.

The Indian business leaders are busy preparing their wish lists of tradable items much before the meeting of India-Pakistan commerce secretaries scheduled in Delhi in November, this year for finalizing the blueprint.

Fahim, who arrived in India on September 27, is slated to fly back to Pakistan on October 2. He has left a lasting impression on the Indian business community, besides being the first Pakistan Commerce Minister to visit India after a gap of 35 years.

The President of the apex Indian industry body, Assocham, Dilip Modi said : “the indirect trade between the two immediate neighbours has increased the cost. The figures of $ 2.5 billion indirect trade and $ 2.7 billion direct trade show the potential of boosting the bilateral trade. If the governments of the two countries can agree for stopping the indirect trade and channelising more of direct trade, it would be cheap and beneficial for the people of the two countries.”

The past President of another apex industry body, FICCI, Rajan Bharti Mittal said that bilateral cooperation should include telecom and TV channel sectors. Cell-phone roaming should be allowed in each other’s country and also TV channels should be viewed in each other’s country. He urged that Indian business can invest in telecommunications and pharmaceuticals in Pakistan, while investors from Pakistan can invest in cement and sports goods industry in India.

The President of the Federation of Pakistan Chambers of Commerce and Industry, Senator Haji Ghulam Ali even went to the extent of suggesting the India be given the status of most favoured nation (MFN) by Pakistan, a status which India has accorded to Pakistan 15 years ago.

The Chairman of the Assocham’s SAARC Committee, Ravi Wig suggested cooperation and investments between the small and medium enterprises (SMEs) of the two countries. The goods of SMEs should be given preference in exports.

The Co-Chairman of the agriculture council of the apex industry body, CII, Salil Singal suggested that India can help in setting up of IT centers in Pakistan and exchange expertise in healthcare and agriculture technology. He mooted joint ventures in sectors like agriculture, pharmaceuticals, oil and natural gas, infrastructure and steel. He called for giving preferences to goods produced by SMEs.

An MoU has been signed between the Indian Trade Promotion Organisation (ITPO) and the Trade Development Authority of Pakistan for facilitating bilateral trade.

According to FICCI, potential joint ventures and trade between India and Pakistan can be in IT, fish processing, drugs and pharmaceuticals, agro chemicals, chemicals, automobile ancillary, light engineering, leather processing and value addition, tea, textile machinery, transport equipment, plastics and textiles.

The CII too has suggested cooperation in healthcare, education and skills, IT and ITES, media and entertainment, agriculture, telecommunications. Both CII and FICCI have suggested the urgent need for cooperation in the energy sector.

At present five top items of India’s exports to Pakistan are manmade filaments; organic chemicals; cotton; residues and wastes from food industries and prepared animal fodder; vegetables and certain roots and tubers. Top five items of India’s import from Pakistan are organic chemicals; fruits and nuts, peel or citrus or melons; salt, sulphur, earths and stone, plastering materials, lime and cement; cotton; lead and article. For land route trade only 21 items are allowed so far.