Opportunities and Constraints in Indo-Pakistan Trade Relations

Abstract

India and Pakistan are two largest economies of South Asia. Since, its inception their relations remained strained due to some bilateral political problems, mainly the Kashmir issue. There is a huge potential of trade between the two states. According to the World Bank report of 2018 trade potential between Pakistan and India were $37 billion. In 2018-19, when both countries cut off their trade ties, the volume of trade between them was about $2.56 billion. This paper aims to investigate the potential of bilateral trade between India and Pakistan as well as the challenges, and constraints to mutually beneficial trade linkages between the two nuclear states of South Asia. The study focuses on theory of interdependence and peaceful co-existence that can be a guiding path for the two states. The constraints to Indo-Pakistan trade can be overcome through mutual dialogue, compromise and understanding. In this study, qualitative research method and descriptive technique has been employed.