“Trade is surely going to be hit again. Who will take the plunge now? After January's incident (when Indian soldiers got killed), talks were slowly gaining momentum.
Even the (commerce) secretary-level talks look doubtful now,” a commerce department official told Business Standard.
The MFN (Most Favoured Nation, meaning non-discriminatory treatment for each other) issue is of prime importance to India, as it wants to have greater access in the Pakistani markets.
Pakistan missed the deadline for granting MFN trade status to India in December last year.
The matter got delayed with a change of government there.
In February 2011, the two governments decided to resume normal bilateral trade and investment relations. Both sides have also moved towards a more relaxed business visa regime.
“Bilateral trade has been progressing smoothly between India and Pakistan . . . Both sides have made considerable progress in improving trade ties,” D Purandeswari, minister of state for commerce and industry, had told the Lok Sabha on Monday, hours before Tuesday’s
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