Lok Sabha Question No. 2517 (UNSTARRED), answered on 2017-07-31
Subject: Trade between India and Pakistan
Ministry: COMMERCE AND INDUSTRY
Asked by: SRINIVAS KESINENI

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 2517 TO BE ANSWERED ON 31 st JULY, 2017

## TRADE BETWEEN INDIA AND PAKISTAN

## 2517. SHRI KESINENI NANI:

Will the Minister of COMMERCE & INDUSTRY ( वािणÏय एवं उɮयोग मंत्री ) be pleased to state:

- (a) the total quantity and value of trade between India and Pakistan during the last three years indicating the percentage of trade;
- (b) the  details  of  goods-wise  split  in  terms  of  volume  and  percentage  in  imports  and exports with Pakistan during the said period;
- (c) whether Pakistan has not reciprocated the Most Favoured Nation (MFN) status to India; and
- (d) if so, the details thereof along with the reasons for not cancelling the MFN status to Pakistan by India?

## ANSWER

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THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE)

(SMT. NIRMALA SITHARAMAN)

- (a)  :  Since the unit for measurement of quantity varies across products, it is not possible  to  provide  the  total  quantity  of  trade  between  India  and  Pakistan. However, the value of bilateral trade between India & Pakistan  during the last three years, and its share of India's total trade, is given below:-
- (b):  Details  of  the  top  25  products  imported  from/exported  to  Pakistan  in  FY 2016-17, indicating value and percentage, for the last three years, are provided in Annexes 1 and 2.

| Value in USD Million                     | Value in USD Million   | Value in USD Million   | Value in USD Million   |
|------------------------------------------|------------------------|------------------------|------------------------|
|                                          | FY 2014-15             | FY 2015-16             | FY 2016-17             |
| India's Bilateral Trade with Pakistan(A) | 2,354.49               | 2,612.16               | 2,288.19               |
| India's Total Trade (B)                  | 7,58,371.89            | 6,43,296.75            | 6,60,599.58            |
| (A) as percentage of (B)                 | 0.31%                  | 0.41%                  | 0.35%                  |
| Source:DGCI&S Database                   | Source:DGCI&S Database | Source:DGCI&S Database | Source:DGCI&S Database |

(c)&(d): Article  1  of  General  Agreement  on  Tariffs  and  Trade  (GATT),1994 requires every WTO member country to accord MFN status to all other member countries. Accordingly, India accords MFN status to all WTO member countries, including Pakistan.

However, Pakistan is yet to transition fully to Most Favoured Nation (MFN) status for India. It maintains a Negative List of 1209 products which are not allowed to be imported from India. In addition, Pakistan also permits only 137 products to be imported from India through Wagah/Attari border land route. Inspite of these restrictions, India continues to maintain a substantial trade surplus with Pakistan. No decision has been taken to review the  MFN status to Pakistan, so far.

Annex 1 Principal Commodities of Exports from India to Pakistan

|                    |                                                                                |                    | Value in USD Million   | Value in USD Million   |
|--------------------|--------------------------------------------------------------------------------|--------------------|------------------------|------------------------|
| S.No.              | Commodity                                                                      | Apr- Mar 2015      | Apr- Mar 2016          | Apr- Mar 2017(P)       |
| 1                  | COTTON RAW INCLUDING WASTE                                                     | 105.03             | 647.35                 | 258.44                 |
| 2                  | COTTON YARN                                                                    | 90.36              | 131.71                 | 214.94                 |
| 3                  | ORGANIC CHEMICALS                                                              | 131.2              | 85.55                  | 179.73                 |
| 4                  | PLASTIC RAW MATERIALS                                                          | 139.47             | 112.08                 | 118.77                 |
| 5                  | MANMADE YARN,FABRICS,MADEUPS                                                   | 142.67             | 165.98                 | 95.57                  |
| 6                  | DYES                                                                           | 78.1               | 72.6                   | 75.73                  |
| 7                  | BULK DRUGS, DRUG INTERMEDIATES                                                 | 68.63              | 65.81                  | 71.33                  |
| 8                  | INDUSTRIAL MACHINERY FOR DAIRY ETC                                             | 38.03              | 41.08                  | 58.73                  |
| 9                  | FRESH VEGETABLES                                                               | 115.22             | 38.79                  | 55.11                  |
| 10                 | RESIDUL CHEMICAL AND ALLED PRODUCTS                                            | 62.96              | 40.75                  | 53.43                  |
| 11                 | COSMETICS AND TOILETRIES                                                       | 38.09              | 46.53                  | 51.99                  |
| 12                 | DRUG FORMULATIONS, BIOLOGICALS                                                 | 29.58              | 16.52                  | 43.29                  |
| 13                 | SUGAR                                                                          | 0.12               | 42.35                  | 42.45                  |
| 14                 | IRON AND STEEL                                                                 | 33.95              | 32.18                  | 40.03                  |
| 15                 | SPICES                                                                         | 50.73              | 38.55                  | 30.7                   |
| 16                 | GROUNDNUT                                                                      | 25.89              | 31.71                  | 29.74                  |
| 17                 | HANDICRAFTS (EXCLUDING HANDMADE CARPETS)                                       | 27.86              | 44.05                  | 26.68                  |
| 18                 | MANMADE STAPLE FIBRE                                                           | 35.43              | 29.41                  | 25.65                  |
| 19                 | PULSES                                                                         | 46.84              | 62.99                  | 23.57                  |
| 20                 | AUTO TYRES AND TUBES                                                           | 36.3               | 46.32                  | 23.39                  |
| 21                 | OTHR RUBBER PRODCT EXCEPT FOOTWEAR                                             | 14.21              | 12.7                   | 17.9                   |
| 22                 | TEA                                                                            | 19.89              | 30.25                  | 17.55                  |
| 23                 | AGRO CHEMICALS                                                                 | 11.96              | 16.79                  | 16.73                  |
| 24                 | INORGANIC CHEMICALS                                                            | 11                 | 10.15                  | 13.79                  |
| 25                 | AYUSH AND HERBAL PRODUCTS                                                      | 19.12              | 18.62                  | 13.67                  |
|                    | Total of exports of top 25 commodities to Pakistan                             | 1353.52            | 1862.2                 | 1585.24                |
|                    | India's total exports to Pakistan                                              | 1,857.28           | 2,171.15               | 1,831.86               |
|                    | Percentage share of exports of top 25 commodities in total exports to Pakistan | 72.88%             | 85.77%                 | 86.54%                 |
|                    | India's total exports                                                          | 3,10,338.48        | 2,62,290.13            | 2,76,280.29            |
|                    | Percentage share of exports to Pakistan in total exports                       | 0.60%              | 0.83%                  | 0.66%                  |
| P=Provisional      | P=Provisional                                                                  | P=Provisional      | P=Provisional          | P=Provisional          |
| Data Source:DGCI&S | Data Source:DGCI&S                                                             | Data Source:DGCI&S | Data Source:DGCI&S     | Data Source:DGCI&S     |

## Annex 2

## Principal Commodities of Imports From Pakistan

|                    |                                                                                  |                    | Value in USD Million   | Value in USD Million   |
|--------------------|----------------------------------------------------------------------------------|--------------------|------------------------|------------------------|
| S.No.              | Commodity                                                                        | Apr-Mar 2015       | Apr- Mar 2016          | Apr-Mar 2017(P)        |
| 1                  | FRESH FRUITS                                                                     | 106.74             | 89.26                  | 126.63                 |
| 2                  | CEMENT, CLINKER AND ASBSTOS CEMENT                                               | 45.93              | 49.69                  | 84.42                  |
| 3                  | PETROLEUM PRODUCTS                                                               | 106.22             | 116.39                 | 78.56                  |
| 4                  | BULK MINERALS AND ORES                                                           | 9.2                | 17.24                  | 21.51                  |
| 5                  | FINISHED LEATHER                                                                 | 28.87              | 12.92                  | 20.62                  |
| 6                  | PROCESSED MINERALS                                                               | 22.05              | 20.44                  | 17.95                  |
| 7                  | INORGANIC CHEMICALS                                                              | 17.09              | 13.94                  | 15.42                  |
| 8                  | COTTON RAW INCLUDING WASTE                                                       | 36.76              | 21.59                  | 12.41                  |
| 9                  | COTTON FABRICS, MADEUPS ETC.                                                     | 23.68              | 18.84                  | 11.8                   |
| 10                 | GLASS AND GLASSWARE                                                              | 16.03              | 5.97                   | 7.76                   |
| 11                 | SPICES                                                                           | 5.02               | 5.09                   | 6.87                   |
| 12                 | SURGICALS                                                                        | 4.83               | 2.74                   | 6.71                   |
| 13                 | WOOL, RAW                                                                        | 9.84               | 7.19                   | 5.35                   |
| 14                 | OTHR RUBBER PRODCT EXCPT FOOTWEAR                                                | 4.18               | 3.15                   | 3.79                   |
| 15                 | ALCOHOLIC BEVERAGES                                                              | 2.41               | 3.28                   | 3.47                   |
| 16                 | MEDICAL AND SCIENTIFIC INSTRUMENTS                                               | 2.36               | 1.5                    | 2.66                   |
| 17                 | RMG COTTON INCLUDING ACCESSORIES                                                 | 1.99               | 1.53                   | 2.07                   |
| 18                 | MARINE PRODUCTS                                                                  | 0.11               | 0.52                   | 2.07                   |
| 19                 | PROCESSED FRUITS AND JUICES                                                      | 0.98               | 1.39                   | 1.77                   |
| 20                 | MANMADE YARN,FABRICS,MADEUPS                                                     | 1.72               | 0.81                   | 1.38                   |
| 21                 | PLASTIC RAW MATERIALS                                                            | 16.7               | 7.21                   | 1.36                   |
| 22                 | DYES                                                                             | 0.23               | 0.21                   | 1.23                   |
| 23                 | RMG MANMADE FIBRES                                                               | 0.51               | 0.87                   | 1                      |
| 24                 | SPORTS GOODS                                                                     | 1.62               | 1.09                   | 0.93                   |
| 25                 | COIR AND COIR MANUFACTURES                                                       |                    |                        | 0.75                   |
|                    | Total of imports of top 25 commodities from Pakistan                             | 465.07             | 402.86                 | 438.49                 |
|                    | India's total imports from Pakistan                                              | 497.31             | 441.02                 | 456.33                 |
|                    | Percentage share of imports of top 25 commodities in total imports from Pakistan | 93.52%             | 91.35%                 | 96.09%                 |
|                    | India's total imports                                                            | 4,48,033.41        | 3,81,006.63            | 3,84,319.29            |
|                    | Percentage share of imports from Pakistan in total imports                       | 0.11%              | 0.12%                  | 0.12%                  |
| P=Provisional      | P=Provisional                                                                    | P=Provisional      | P=Provisional          | P=Provisional          |
| Data Source:DGCI&S | Data Source:DGCI&S                                                               | Data Source:DGCI&S | Data Source:DGCI&S     | Data Source:DGCI&S     |

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