Indian industry ready to snap trade relations with Pakistan

September 24, 2016 11:19 pm | Updated November 01, 2016 08:43 pm IST - MUMBAI:

Indian industry is ready to severe ties with Pakistan amid growing tensions between the nuclear-armed nations following an attack by militants on a military camp in the border region of Uri which killed 18 Indian soldiers.

Business leaders that The Hindu spoke to, admitted that they were concerned over the situation and believed that a conflict would be disastrous for both countries.

“While I strongly believe that India needs to take a hard stand on Pakistan, war is not a solution to the Indo-Pak crisis,” said Harsh Goenka, Chairman of RPG Enterprises.

“The government at the Centre has acted with restraint. Diplomatic isolation and international pressure is the only way to cut-off Pakistan from the rest of the world. The consequences of war will be disastrous for both countries.”

Subdued impact

Snapping business ties with Pakistan may not hurt India’s interest as according to industry body ASSOCHAM, India–Pakistan trade is abysmally low accounting for less than half a per cent of India’s total global trade.

“The question of trade possibilities with Pakistan only arises when our relations are good,” Venugopal Dhoot, Chairman of Videocon Industries said.

“In current scheme of things, snapping business ties with Pakistan will not hurt India’s interest,” Mr. Dhoot said.

ASSOCHAM President Sunil Kanoria said that the anxiety level of the industry has gone up.

“India needs to take a tough stand and the best way to attack a country is economically as fighting a war won’t help anyone.

There may be some challenges to industry but we have to bite the bullet for larger good,” Mr. Kanoria said.

“In all, trade with Pakistan was equivalent to 0.41 per cent of India’s global merchandise commerce,” said D.S. Rawat, Secretary General, ASSOCHAM.

On its part, India Inc. is behind Prime Minister Narendra Modi for steering India’s interest in the best possible direction.

“The strategic decisions are fully the domain of the government which enjoys the full backing of the nation,” according to a statement issued by ASSOCHAM.

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