The India-Pakistan thaw has resulted in major trade gains for both the countries.
According to sources, India's trade with Pakistan has touched $869.15 million during the first eight months of the current fiscal. In 2005-06, the figure was $689 million.
Moreover, with the South Asian Association for Regional Cooperation (Saarc) countries also India is doing business with renewed vigour now.
Following Pakistan's decision to extend the list of importable items from India has added to the trade boom between the two countries. Pakistan had expanded the list by adding 302 new items to take the total to 1,075.
Though Islamabad has expanded the list in recent months, the basket of major items from India to Pakistan consists of a very few principal products such as machinery and instruments, drugs, pharmaceuticals, fine chemicals, transport equipment, other commodities, primary and secondary iron and steel, paper and wood products and footwear.
Out of the export figure of $869 million to Pakistan during April-November 2006, footwear, electronic goods and primary and secondary iron and steel constitute the bulk of items.
Sources said since Pakistan permits only a limited number of items to be imported from India, those not on the permissible list are being traded through third countries. Thus goods are transported by ship from Mumbai to Dubai and then to Karachi.
