Posts Tagged ‘ Amritsar ’

Made in India’ Show in Pakistan as Both Talk to Boost Trade

By Surojit Gupta for The Times of India

Trade ties between India and Pakistan are expected to get a boost as New Delhi reaches out to the business community across the border, starting Monday to assure them about the positive impact of normal trade ties. Commerce minister Anand Sharma will undertake a rare journey to Pakistan, leading a large delegation of senior officials and top businessmen as the two hostile neighbours take baby steps to normalise trade and economic relations.

The private sector led by industry chambers has put up an “India show”, in Lahore and Karachi – the first ever trade exhibitions from India where over 100 exhibitors are participating. Firms representing pharmaceuticals, textile, gems and jewellery, chemicals and petro-chemicals are showcasing products.

The move is a follow up to the efforts to normalise trade ties. The Pakistan government announced granting of Most Favoured Nation (MFN) status to India in November last year. But, criticism from a section of industry in Pakistan has forced Islamabad to take measured steps on the issue. But, officials said they were optimistic that by the end of 2012, the transition to full MFN status would be complete.

Officials said they will launch outreach programme to assure businessmen in Pakistan that Indian goods will not swamp the Pakistan market if trade is normalised. “We will tell them that there are enough trade safeguards measures to ensure that Indian goods do not flood the Pakistani market. Let us first liberalise trade and see the impact,” said a senior government official.

Pakistan allows exports to India but has a positive list of 1,938 items which are officially allowed to be imported from India. Latest data shows that formal trade between India and Pakistan rose to $2.7 billion in 2010-11 from $144 million in 2001, while informal trade including third country trade is estimated at $10 billion, according to a Ficci status paper. “I have no doubt in my mind that bilateral trade, which currently stands at $3 billion, can be raised to $10 billion if trade through third countries (Dubai, Singapore and Central Asian countries) is channelised into direct exchange between the two countries,” said R V Kanoria, president, Ficci.

The government has undertaken a series of measures to increase bilateral trade. There is a move to open a second gate at the Attari-Wagah border, which is expected to increase the number of trucks crossing the border to 500-600 daily from 150-200 at present. Pakistan has agreed to remove restrictions on the number of commodities traded by the land route once the infrastructure in Wagah is ready, while both countries have agreed to avoid arbitrary stoppage of goods at ports. Suggestions have been made for opening up of an additional land route at Monabao-Khokhara Par on the Sindh border for faster movement of goods.

“We are taking significant steps to improve the border infrastructure. India has invested nearly Rs 150 crore to develop infrastructure at the Integrated Check post near Attari,” said a senior government official. He said the visa regime for business travel is also expected to be liberalised soon with multiple entry visas for 10 Indian cities, along with exemptions for police reporting. The formal announcement is expected to be made soon. Talks to expand trade in petroleum products are progressing, while efforts are also on to start negotiations for trade in electricity between the two nuclear-armed neighbours. Both sides have agreed on grid-connectivity between Amritsar and Lahore, which would pave the way for trade of up to 500 MW of power.

Trade experts said they were optimistic about the latest moves and said the effort will go a long way in helping faster regional integration. “The positive spin off for normalisation of trade is enormous. Pakistan has given signals and India now needs to take the initiative. Normalisation of bilateral trade relations will help in putting much of the political bickering on the backburner,” said Biswajit Dhar, director-general at Research and Information System for Developing Countries, an economic and trade thinktank. Experts said there was huge potential for forging joint ventures between Indian and Pakistani companies in sectors such as information technology, fish-processing, drugs and pharmaceuticals, agro chemicals, chemicals, automobile ancillary and light engineering.

Pakistanis for Peace Editor’s Note– The best chance of peace between India and Pakistan can only be achieved through trade and normalization of ties. The India Show at the Lahore International Expo Centre Feb 11-13 will go a long ways to bridging the gap and move us closer to achieving peace one day, which is the best scenario for both nations long term.

India, Pakistan To Open New Trade Check-Post

By Tom Wright for The Wall Street Journal

While India and Pakistan trade barbs over terrorism, the country’s trade officials are making small but notable steps toward opening up their economies to one another.

In October, authorities plan to open a second trade check-post at the Wagah border in Punjab state, the only land-crossing between the two hostile neighbors, in an attempt to boost trade volumes. The commerce ministers of both countries are expected to formally announce the new check-post at a meeting in New Delhi later this month.

It might look like a baby step in normalizing frozen trade relations. But with so much else going wrong in India-Pakistan ties, it’s a welcome bit of positive news and one that is energizing Indian businessmen who work close to the border.

Currently, trucks that carry the meager flow of trade between India and Pakistan have to stop unloading at 3 p.m. because that’s when tourists from both sides start arriving at the Wagah border for the evening “Beating Retreat” ceremony – a display of nationalistic bravado that precedes the formal closing of the gates between the countries each evening.

The new terminal will allow trade to continue until 7 p.m. and hopefully increase volumes passing through the check-post.

Some business groups in Amritsar, a city near the Indian side of the border,  are betting on an expansion of trade. Suneet Kochhar, director of a paper company based in Amritsar, is involved with a group of investors who have accumulated land to develop a freight terminal near the second trade check-post.

“Once it’s operational, things will change,” Mr. Kocchar says. Land near the border has doubled in value in the past two years, he adds.

To be sure, Pakistan and India have looked like moving ahead on trade in the past but things have gotten nowhere. Another attack like the one carried out by Pakistani militants on Mumbai in 2008, killing over 160 people, could easily nip the current optimism in the bud.

Two-way India-Pakistan trade was a paltry $1.8 billion in the year ended March 31, 2010, basically unchanged over the past five years, while India’s trade with China has skyrocketed to $60 billion.

Indian Prime Minister Manmohan Singh has said that India won’t be able to fulfill its economic potential unless it normalizes relations with Pakistan, which is a gateway to the Central Asian republics and beyond. For Pakistan, India is a huge potential market of 1.2 billion people. For now, businesses that want to get around restrictions have to ship goods at extra cost via ports like  Dubai.

The new check-post is a good start. Indian officials estimate two-way trade could easily jump to $2.7 billion in the short term. But there won’t be a seismic shift in trade volumes until both countries make serious efforts to expand the list of products that they can trade with one another. The current list encompasses just over 1,000 items.

That has frustrated some business people. Sunil Behal, director at Poplon Chemie, an Amritsar-based company that makes chemicals to treat leather, says some of its key products are not on the list. The company currently exports only $7,000 worth of products to Pakistan each month out of its total global exports of over $180,000 in the same period, he says.

But like many businesspeople in the area, he’s hopeful that politicians really mean to make progress this time. The check-post, he say, “will definitely boost business.”

There are tentative signs of seriousness. Ahead of the commerce ministers’ meeting later this month, officials from both sides met in New Delhi and thrashed out their differences. The minutes of the meeting  are here.

The officials were candid about the challenges. The new check-post, they agreed, will only be effective if both sides take other measures like simplifying customs procedures.

Pakistan officials complained they were not even aware of the customs rules followed by India, and faced a number of non-tariff barriers to trade such as cumbersome testing of products by Indian authorities that can take weeks, according to the minutes.

India lamented that Pakistan continues to put blocks in the way of trade, including proscribing a number of goods that aren’t allowed to enter Pakistan by road but instead have to come by rail. Mr. Kochhar, the paper company director, says he would export newsprint to Pakistan, but it’s uneconomical at the moment to ship via rail.

Both sides complain about the difficulty of getting business visas and have promised to remove bureaucratic obstacles.

The key, though, might be plans that India and Pakistan have to allow trade in most products, only protecting weak and strategic industries. The two countries are currently drawing up a list of these industries – known as a negative list – to submit to the other side.

Don’t expect these issues to be ironed out overnight. Still, there’s movement which both nations are trying to build on.

India Link in US: Nikki Haley Creates History as First Woman Governor

As Reported by The Hindustan Times

Parents of both Nikki Randhawa Haley, who on Tuesday won the governor’s election in South Carolina, and Bobby Jindal, the other Indian American governor of Lousiana, were born to immigrants from Punjab. Nikki Haley is the first woman and the second person of Indian origin after Bobby Jindal to become governor in the US. Jindal won the top job in Louisiana state in 2007.

While Nikki’s father Ajit Singh came to the US from Amritsar, Bobby Jindal’s (who name before his conversion to Christianity was Piyush Amrit Jindal) father Amar Jindal came from Malerkotla, not far from Amritsar.

Nikki’s victory is another sweet moment for Amritsar because the first Indian American Congressman Dalip Singh Saund, who served three terms (1957-1963) in the US Congress from California, also came from that city, the home of the Golden Temple, Sikhism’s most famous shrine.

Nikki, whose family is running a garment showroom called Exotica International in West Columbia since 1976, has been serving as a legislator in the South Carolina state assembly since 2004.

“I don’t do anything halfway – I’m in this race to win,” Nikki had told IANS in July taking time off her busy campaign for raising money.

“I am confident that come November, the people of South Carolina will send me to the Governor’s Mansion.

“When they (voters) do, I will immediately get to work to give them progress that makes them proud.”

Asked whether her Sikh background will matter in the race, she had said,”What matters most in South Carolina – and I imagine elsewhere in the country – is not the personalities of the candidates but the message they carry.

“Our message of bringing good government back to the people of this state, creating jobs by reforming our tax code so it’s flatter and fairer, and reminding government of the value of a dollar resonates with all the people of this state.

“I am very proud of my background and how I was raised. Just as in 2004 (when her opponents had raised the issue of background) I will hold my head up high and focus on what I can do for the people of this state.”

Nikki beat Democrat Vincent Sheheen who tried to steal her conservative agenda by projecting himself as “pro-life, pro-gun rights and pro-jobs”.

Pakistanis for Peace Editor’s  Note 11/03/2010We at Pakistanis for Peace want to congratulate Nikki Haley for winning the governorship of South Carolina in a very tough and hard fought race. Both as an American as well as ethnically being a person from the Indian subcontinent aka Desi, we are proud to see her elected to serve as governor, despite disagreeing with her party on many issues.

Her rise as well as that of Governor Bobby Jindal of Louisiana to the top of American politics is a source of pride for all Desis, be they Indian, Pakistani, Bengali, etc. We invite people of all races, ethnicities, and backgrounds to join our Facebook group at Pakistanis for Peace and strengthen those who support peace between India and Pakistan and around the world. To join, clik  http://www.facebook.com/group.php?gid=37793413510&v=wall

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