Click to play videoNew Delhi: Pakistan's decision to grant India Most Favoured Nation (MFN) status is likely to boost trade between both countries.
India exports vegetables and few other items valued at about 15 hundred crore rupees every year via the Attari-Wagah border crossing. And now with Pakistan granting MFN status to India the list of export items crossing the border is set to expand. The move is being welcomed in New Delhi.
Montek Singh Ahluwalia said, "We always gave Pakistan MFN treatment, Pakistan never gave us MFN treatment but you know one shouldn't look backward I am glad they did and I think it's a good move."
Last year Indian exports to Pakistan stood at USD 1.2 billion while Pakistan exports to India totalled USD 268 million. The MFN status is expected to boost exports to Pakstan by 10 times.
Gunbir Singh, Founder Chairperson, CII, said "It is a commercially very sensible national decision for Pakistan. It doesn't make sense to fritter away and scarce economic resources of the country to purchase expensive goods where the same are available at much lower price in the neighbourhood."
Indian traders too are upbeat.
Rajesh Setia, a trader from Amritsar, said, "Exports increasing is good for a country. Farmers will get paid better for their products. So it is very favourable for us."
Abhishek Arora, another trader from Amritsar, said, "Trade will increase and relations between India, Pak will also improve."
The new policy will pave the way for trade in electricity, petroleum products, Bt cotton seeds and even reduce non-tariff barriers that have until now blocked trade between the 2 neighbours.
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