{"id":11876,"date":"2021-04-03T14:57:52","date_gmt":"2021-04-03T09:27:52","guid":{"rendered":"https:\/\/triumphias.com\/blog\/?p=11876"},"modified":"2021-04-03T14:57:52","modified_gmt":"2021-04-03T09:27:52","slug":"india-on-pakistans-bilateral-trade","status":"publish","type":"post","link":"https:\/\/triumphias.com\/blog\/india-on-pakistans-bilateral-trade\/","title":{"rendered":"INDIA ON PAKISTAN\u2019S BILATERAL TRADE"},"content":{"rendered":"

Relevance: Mains: G.S paper II: International relations ; G.S paper III: Economy<\/strong><\/span><\/h4>\n

\"\"<\/p>\n

Why in news?<\/strong><\/p>\n

Foreign Minister Shah Mahmood Qureshi said there can be no normalisation of ties until New Delhi reverses its decision to revoke the special status of Jammu and Kashmir.<\/p>\n

CONTEXT<\/strong><\/p>\n

India declined to comment on Pakistan\u2019s flip-flop on plans to go for limited imports of sugar and cotton from the country.<\/p>\n

In a volte-face,\u00a0Pakistan\u2019s Cabinet on Thursday rejected the proposal\u00a0of a high-powered committee to import cotton and sugar from India.<\/p>\n

India-Pakistan trade before ban<\/strong><\/p>\n

Given their tumultuous relationship, trade between the neighbours has always been linked to politics. So, India\u2019s exports to Pakistan fell around 16 per cent to $1.82 billion in 2016-17 from $2.17 billion in 2015-16 after relations deteriorated in the aftermath of the Uri terror attack and the Indian Army\u2019s surgical strikes on militant launchpads in Pakistan-occupied Kashmir in 2016.<\/p>\n

Despite continuing tensions, trade between the two countries grew marginally in subsequent years; Indian exports rose nearly 6 per cent to $1.92 billion in 2017-18, and then by around 7 per cent to $2.07 billion in 2018-19. Imports from Pakistan, though much less in volume, also increased by 7.5 per cent to $488.56 million in 2017-18 from $454.49 million in 2016-17.<\/p>\n

Growth of imports from Pakistan slowed to around $494.87 million in 2018-19 \u2014 an increase of around 1 per cent \u2013 before political relations entered a deep freeze in 2019.<\/p>\n

Major products traded<\/strong><\/p>\n

    \n
  • Over the years, India has had a trade surplus with Pakistan, with much less imports than exports. Pakistan was among India\u2019s top 50 trade partners in 2018-19, but was pushed out of the list in 2019-20.<\/li>\n
  • It had been anticipated that a trade ban between the countries would affect Pakistan more, since it relied heavily on India for key raw materials for its textiles and pharmaceuticals industries.<\/li>\n
  • In 2018-19, cotton ($550.33 million) and organic chemicals ($457.75 million) accounted for around half of Pakistan\u2019s imports from India.<\/li>\n
  • Other major Pakistani imports from India that year included plastic ($131.19 million), tanning\/dyeing extracts ($114.48 million), and nuclear reactors, boilers, machinery, and mechanical appliances ($94.88 million).<\/li>\n
  • After the ban, imports of these five products fell drastically to $1 million to $2 million between April 2020 and January 2021, while cotton imports stopped altogether.<\/li>\n
  • The only increase has been in pharmaceutical products \u2013 Pakistan has so far imported around $67.26 million worth of drug products, and over $115 million worth of organic chemicals to ensure sufficient supplies of medicines during the\u00a0Covid-19\u00a0pandemic.<\/li>\n
  • India\u2019s major imports from Pakistan in 2018-19 were mineral fuels and oils ($131.29 million), edible fruits and nuts ($103.27 million), salt, sulphur, stone and plastering materials ($92.84 million), ores, slag and ash ($17.18 million) and raw hides and leather ($16.27 million).<\/li>\n
  • The country imported these products in substantially higher volumes from other countries \u2013 $25.51 billion worth of mineral fuels and oils from Saudi Arabia; $840.80 million in edible fruits and nuts from the US; $566.52 million in salt, sulphur and plastering materials from the UAE; $862.00 million in ores, slag and ash from Chile; and $83.36 million in raw hides, skin and leather from Italy.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

    Relevance: Mains: G.S paper II: International relations ; G.S paper III: Economy Why in news? Foreign Minister Shah Mahmood Qureshi<\/p>\n","protected":false},"author":1,"featured_media":11713,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[1033,123,995,844,114,1030,1029,1028,1032,1026,115,116,1034,1027,1031],"tags":[],"class_list":["post-11876","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-best-optional-sociology","category-current-affairs","category-current-affairs-international","category-gs","category-sociology-optional","category-sociology-civils","category-sociology-ias","category-sociology-mains","category-sociology-mains-ias","category-sociology-optional-sociology-optional","category-sociology-optional-paper-i","category-sociology-optional-paper-ii","category-sociology-scoring-optional","category-sociology-upsc","category-sociology-upsc-mains"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/11876","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/comments?post=11876"}],"version-history":[{"count":1,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/11876\/revisions"}],"predecessor-version":[{"id":11878,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/11876\/revisions\/11878"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media\/11713"}],"wp:attachment":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media?parent=11876"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/categories?post=11876"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/tags?post=11876"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}