Neighbourly trade
The news on Sunday, May 11, 2014

By Pradeep S Mehta

Trade is expected to be big part of India’s foreign policy when the new government comes in this summer. More importantly, States will be closely engaged in the strategy, which would also allow them to speak with their counterparts in neighbouring countries to enhance trade. Let us review the current situation of trade with neighbours. Only 137 items are allowed to be traded via the Attari-Wagah post bordering India and Pakistan. ‘Ridiculously small’ is an under-statement because there are more than 10,000 items, which are legally traded across the globe. This lack of cross-border trade between the two nations who fought four wars since their independence is as much due to absence of political will on both sides and as a result of poor trade-related infrastructure. Fortunately, the necessary infrastructure has now been developed due to an enlightened policy on both sides. This policy will be revisited after the Indian elections in May to allow cross-border trade in almost all commodities. More...

India: new trade policy for a new government
East Asia Forum, May 02, 2014

By Pradeep S Mehta and Bipul Chatterjee

In India, 150 million new and better jobs need to be created, lest the country’s perceived demographic dividend fails to become a reality and, instead, becomes a burden. To achieve this, and provide much-needed lift for the economy, India can follow a combination of consumption-, investment- and trade-led growth. This is because of the size of its domestic market, investment requirements, and increasing outward-orientation. Trade is already no small part of the economy — over the last five years merchandise trade as a percentage of GDP is more than 40 percent and is growing steadily. More...