ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Nisha TanejaSubscribe to Nisha Taneja

Nepal's Transit through India

There are a large number of inadequacies in the prevailing India-Nepal transit treaty. Issues with regard to documentation requirements, trans-shipment procedures, sensitive items, arbitrary bank guarantees, and poor infrastructure have resulted in considerably high transaction costs for transit cargo. Although the value of the total transit trade through India has been increasing, its share in Nepal's total trade with the world has seen a decline during 2009-13.

India's Trade Deficit with China

India's trade deficit with China widened from $23 billion in 2010 to $35 billion in 2013, accounting for 25% of India's total trade deficit. What is driving this widening of the trade gap and what options does India have to close the gap?

Revisiting India Pakistan Cross-LoC Trade

Duty-free barter trade across the Line of Control from two points in Jammu and Kashmir has grown since its initiation as a confi dence building measure in 2008. Despite growing volumes, traders face several logistical and policy hurdles that mean risky returns on trade and high transaction costs. The governments of India and Pakistan must formalise trade between the two parts of Kashmir to reduce transaction costs, uncertainties of barter trade, and trade distortions caused by duty-free trade to overall India-Pakistan trade.

Most Favoured Nation: New Trade Opportunities for India and Pakistan

The sixth round of trade talks between India and Pakistan is noteworthy for having followed up on all the decisions taken in the fifth round of April 2011. Pakistan has decided to grant the Most Favoured Nation status to India, and the latter has initiated business-to-business and government-to-business interaction for addressing information gaps. These measures could help realise a bilateral trade potential of $25.2 billion, estimated as of 2010, an amount 10 times larger than the current $2.5 billion trade.

Issues in India-Pakistan Trade Negotiations

India-Pakistan bilateral trade negotiations are pegged to two key issues - Pakistan granting most favoured nation status to India and the latter removing non-tariff barriers. The resolution of these issues is likely to result in larger market access gains for India than Pakistan. To achieve mutual benefits, the two countries should, despite recent political events, also focus on removing barriers such as transport protocols that are specific to bilateral trade.

An Approach to Prune India's Sensitive Lists under SAFTA

This article offers a systematic approach and economic rationale for pruning India's sensitive lists under the South Asian Free Trade Area agreement. The recommended sensitive lists can be used by Indian policymakers in the forthcoming SAFTA negotiations.

Role of Treaties in Facilitating Nepal's Trade with India

Concessions offered to Nepal under various Indo-Nepal trade treaties are transitory in nature and do not contribute to long-term growth of the economy of the Himalayan country or to sustainable trade between the two countries. The scope of the existing treaties needs to be widened for greater Indo-Nepal economic cooperation.

Trade, Technology Transfer and Climate Change

Current developments in regulatory regimes raise concerns about the manner in which technology transfer is likely to pan out in the debate on climate change. Existing trade agreements have made developing countries cope with environmental challenges in meeting standards. Given that India's exports face increasing vulnerability if trade measures were to be adopted by the developed countries, existing financial mechanisms for risk mitigation need to be strengthened alongside creation of a separate technology transfer mechanism.

Revitalising SAARC Trade

As India assumes the chairmanship of the South Asian Association for Regional Cooperation at the next summit in April, it is pertinent to review the potential gains in revitalising trade and commerce in the region, identify barriers to greater regional integration and charter a role for India in rejuvenating intra-SAARC trade.

India's Exports to Pakistan: Transaction Cost Analysis

India and Pakistan, as natural trading partners with a common border, can have costs of trading substantially lower than with the rest of the world. On the basis of a firm level survey this article shows that restrictive trade policies, limited trade routes, inadequate transport infrastructure and procedural hindrances lead to high transaction costs for Indian exports to Pakistan. The article suggests measures that could lower such costs.

Informal Trade in the SAARC Region

As the 13th SAARC Summit approaches in January 2005, it is important to highlight the role of informal trade in free trade agreements. Focusing on two key facets of informal trade - its magnitude and factors determining such trade - this paper analyses the implications of informal trade for FTAs.

India-Pakistan: Trade Relations: Opportunities for Growth

India-Pakistan trade has continued despite the volatile political situation. There is an immense trade potential waiting to be tapped. The 12th SAARC summit has provided an excellent opportunity for the two countries to exchange trade sops. A feasible solution to enhance trade can be found in a viable give-and-take between the two countries. Pakistan can offer trade concessions to India under SAFTA, while India can reciprocate by playing an effective role in removing non-tariff barriers.

Pages

Back to Top