Question : Trade between India and Pakistan

(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 given by the minister

(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:-
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

(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.

(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
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
Data Source:DGCI&S


Annex 2

Principal Commodities of Imports From Pakistan
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
Data Source:DGCI&S

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