Give and take

The upward trend in trade between India and Pakistan is heartening. Delhi must build on it

The upward trend in trade between India and Pakistan is heartening. Delhi must build on it

When,a year and a half ago,Pakistan announced,in principle,that it would grant Most Favoured Nation status to India,it was believed to be a matter of time before this next step enhancing trade ties would be complete. It still is not. But while Pakistan is caught up in an election campaign,official assurances have been forthcoming that the process is moving apace and simply awaits the installation of the next civilian government in Islamabad. These signals yield a tangible optimism,one that rests on data of growing trade between the two countries. In 2012-13,Indias exports to Pakistan rose by 15 per cent,while imports were up by 30 per cent.

In actual terms,the volume of trade may not be particularly substantial. The key is the fact of the upward trend. In a bilateral relationship characterised by extraordinary inhibition in being seen to be magnanimous towards the other,the tendency is to be seen to be extracting something vital in return for conceding to the others demand. In fact,since the Mumbai attacks of 2008,it has been a slow ride in getting official engagement back on track. That trade between India and Pakistan has flourished,and that the two leaderships have invested their energies in trying to dismantle barriers,makes a case for New Delhi to reach out to the new government in Islamabad later this summer in a more overt manner. Getting MFN status from Pakistan India had accorded it to Pakistan in 1996 will not necessarily mean gamechanging trade volumes for India. Indeed,the gains will accrue more to Pakistani business and consumers,given that having India treated on par with other trade partners would lower the cost of raw material

from India; it would also aid in Pakistans tax collections,as it would disincentivise the smuggling of these items into the country. That is,however,not to say that India would not benefit. It would,immensely. Dismantling the barriers to assist greater prosperity in Pakistan will help broadbase the constituency for bilateral cooperation in that country,a crucial step in winning peace in the subcontinent.

It is in Indias interest,therefore,to ignore the reflexive,though isolated,antagonism that prime-time TV talk shows thrive on and take unilateral measures to amp up trade ties.