India has decided in principle to allow foreign direct investment from Pakistan, as part of the road map to enhance economic engagement, a development that is expected to boost bilateral trade.
“As part of the initiatives to promote liberal trade, India has in principle agreed to FDI from Pakistan,” Commerce and Industry Minister Anand Sharma said on Friday, after meeting Pakistan Commerce Minister Makhdoom Amin Fahim here.
Mr. Sharma said the procedures, and the requirements, for allowing FDI were being formulated, and would soon be notified.
Both countries have also agreed in principle to allow opening of bank branches to guarantee smooth trade. This is the upshot of several rounds of talks between the Reserve Bank of India (RBI) and the State Bank of Pakistan.
“Both the RBI and the State Bank of Pakistan are in favour of opening up branches on both sides of the border,” Mr. Sharma said.
On this count, Mr. Fahim said, both sides were on the same page.
Pro-active steps
Encouraged by the pro-active steps taken by Pakistan, India would carry out a review of 30 per cent of the ‘sensitive list' in the next four months as a confidence-building measure, Mr. Sharma said.
Pakistani banks and businesses are keen on setting up shop in India, and the decision could pave the way for their entry into the country.
Business council
Mr. Sharma also announced that an India-Pakistan business council would be set up soon. It would be co-chaired by both countries.
Mr. Fahim said talks were being held for cooperation in the textiles trade.
“We have also decided to begin negotiations in the hospitality, education and tourism sectors, and experts groups would be constituted to work out the modalities for talks,” he said.
Later, Mr. Sharma and Mr. Fahim left for the Attari-Wagah border, near Amritsar, to inaugurate the second Integrated Check Post, which will facilitate a smooth flow of road traffic and give traders and people crossing the border upgraded and modern infrastructure.
Keywords: FDI, India-Pak trade relations, foreign investment
more than 400 prisoners escaped from a jail after an attack and
Congress wanna do business with pakistan. Shame on you. looks its a
pressure within the party that forced the party to take such
decisions.MR prime minister first hang Kasab and Afjal guru for their
doings then think of taking such decisions. Do not play with feelings
of those who lost their lives for INDIA.
I hope that very soon this congress government is voted out. This is absolutely the
wrong path, opening India to this country is importing terrorism, racism, bad
thinking, arab policies, anti US, anti Jewish thinking all this will happen. Already India
has lost Pakistan, Bangladesh and Kashmir is at stake...I am sad seeing an India in 50
years where some foreigners will talk about a multireligious and multiethnic country
with a democratic framework which existed once upon a time......
Great move. I am ready to buy Indian products in Pakistan, and i am sure there must people like me in India who want to buy Pakistani products. With this, our economies benefit and people will get cheap but better products. Lets grow together!
To those who are of the opinion that more trade with Pakistan does not bode well for India,consider this. Why is it that US and China, despite harbouring so much mistrust between them, never go beyond a limit to criticize each other? Their volume of trade is much too huge to be put at at stake if a confrontation happens, and both countries know this well. I do not say that increased trade will resolve all outstanding issues between India and Pakistan. But greater trade and increased people-to-people contacts would go a long way in normalizing the relationship, and thereby create a favourable atmosphere to discuss issues with the seriousness they deserve.
This is a very good move... tehre are many pakistanis who are afraid to invest in their own country and will be ready to invest in India. This will go a long way in normalising ties.
Shame ! Now, Pakistani banks can directly fund terror activities in India. Why on earth do we need FDI from Pakistan ? Have the mandarins in MEA lost their logical thought.
the repercussions of such decisions are hidden in the dark future . with
Pakistan we need to very cautious. pakistan has two or more distinct
faces and it has a habit of routinely changing those faces on world
platform. onus is on congress now. we don't want more mess on India's
soil.
What A dangerous thing to do .All the bad money will be channellised to India and used for all anti india purposes.UPA has no idea what real develpoment is. Development which leads to subjeting the country to multinational company greed,subjecting our agriculture to the control of seed companies,destroying our environment ,invasion of our secular India by othr aggressive religions .All these are anti National.
We need to strengthen relationships with legitimate civilian politicians of Pakistan. This is the only way to undermine the shady military operatives who have created and continue to feed the terrorists.
Another example of immaturity of Indian policy makers.Yes, economy is important, but how much you really expect from Pakistan ? Pakistan as a country is yet to put well-being of its public and economic development on top of its agenda and also India seems to be over confident of its economic might. This is too early.Indian Prime Minister must tame his desire to change the India-Pakistan relations to realistic levels and keep in mind the sensitivities of indian public. Pakistan has yet to act against 26/11 perpetrators and it must show respect to India's territorial integrity which include the state of J&K, and shun terrorism as instrument of its foreign policy.
Good decision by the Indian government. This treaty will enhance stronger trade ties between the two nations. Friendly neighbors lead to a strong Indian economy.
This is a growing steps taken by the two nation for their economical and
bilateral development.It will open some new areas and will boost up the
relationship between two country.
Detractors abound on both sides of the border is an indisputable fact. They rather cut their nose to spite their face than have anything good happen like, enabling the free movement of people and goods. This even after 65 odd years of division encouraged by the former colonial masters. Hopefully as time goes by, the people of Asia will be able to move as freely as those of Europe do, across their countries by road, rail or bare feet for that matter.
May that happen sooner than later.
Both countries will benefit from it but I believe Pakistan will be a bigger winner. Now finally they have realised that their economy is declining at a fast pace and importing goods from the United Kingdom is not a good idea if India is available, hence they have put aside some of their fanaticism and focused on econmic aspects. I do not know why only India has to bow, Pakistan has still not done anyhthing about 26/11, Mr Sayeed is a free bird, he gives interview to news channels, he roams freely although 10 million dollars has been announced on his head. Why should India open itself up for a country who has always been inimical to it. Who knows this trade route may invite more terrorists into India. I disapprove of it.
I am appalled. Pakistan's biggest export is terrorism, and the most favored nation for this product is India. Now they have all they need to set up banks, Jihad cells and whatever else they need to do a 26/11 a thousand times over. It is time we had the right to recall ministers like Anand Sharma who act against the country's interests.
This government always focusing only economy and trade developments. They never think about cross border terrorism and forgot all the bomb blast incidents happened in india during last few years. All the terrorists are stationed in pakistan.Even america offered a price for sayeed's head. But india always keep quite and started to open banks in pakistan. 25 Crores spent to kasab's for his peaceful living. If the terrorist kills more than 100 people , there is no human rights issue , but when the police officer encounter that terrorist , then immediately so many people from human rights comes in picture.
,,, Saeed had made it clear that his intentions are not only to liberate Kashmir but also take steps to re-establish Muslim Supremacy and Muslim Rule once again in India. ! With relentlessness terror acts by Pakistan based terrorists [ aided by sleeping cells in various parts of India ] ,I am afraid the Wagha border may act as a easy route to export terror elements to India without UN-necessarily getting into trouble through Kashmir Borders across LOC ! I wish RTI activist take steps to seek information from the Government . Recently Dinamani , Tamil Newspaper ,wrote that unlike Tamils ,Punjabi's wish to establish the ties with Punjabi's on the other side !While Tamils have no Godfathers ,Punjabi's have plenty.
Where will Pakistan get foreign exchange to invest in India?It's own economy is in tatters and it pays it's external bills from donations and foreign aids.
India and Pakistan ,both nations have enormous power to become world
leaders.But differences among Kashmir and other terrorist activities
ruining the power of both countries.Kudos to both the governments on
this tie.This will open the new door of hope and friendship among the
nations and their people.
Whatever India and Pakistan may try out, it is not going stick the reason being, both the nations were born out of religious segregation. However much you may wish and try, you can not make earthern vessels out of pure sand. My heart goes out for the present and future generation of Indians and Pakistanis who are going to live this burden of monumental blunder in Indian history.
Sorry to be cynical, but what are the Indian govt. smoking ? If some one fools us once, we can say shame on you, but when that person fools us again ..all we have to say is shame on me! Having said that, why can we not learn from past mistakes, don’t they (Govt./Diplomats) remember that India was engaged in some peaceful talks just before Kargil. Of-course they won’t remember, as none of them lost their people in that “stupid” Kargil war. Yep.. stupid, as we could have avoided it then, and now too.. another Kargil in the making.
We need to punish Pakistan, if not militarily then economically.
This is good news indeed. The problem is that no one wants to invest in pakistan, not even the pakistanis!
India and pakistan must ultimately come together.That is not a fantasy but a dream, as dreams can come true. A secular, democratic, non-aligned and undivided India is best.
Our relation with Pakistan is shaping like that with China.Outstanding
issues should not come in the way of boosting economic
relations.This will give new outlook to south asian economic ties,for
Myanmar is also slowing opening with countries ready to relax
sanctions.Still, terror is an issue and it is in the interest of Pakistan to
check this menace.
good move! There is need to carry forward such reforms. We cant be eternally bound by our neighbours to realise our full potential in world. India can counter influence of outside countries in subcontinent only by building mutually beneficial partnership with neighbours.
@Sadasivan.Prithviraj was defeated and killed by Afghan King Shahabuddin Ghauri. You profess so much love for Afghanistan and so much hate for Pakistan for killing Prithviraj, this doesn't stand to any logic.
To those critics playing zero sum game: India being a big brother has an ethical obligation to help not so fortunate neighbour. No good will come out of an unstable nation right next doors. One best positive contribution to stabilise the region is through trade which will encourage people to people contact, hopefully help to lift the fog of mistrust.
@RKRAO REBBAPRAGADA, I agree with you that the current Europe is together with the bond of trade and commerce. Once the countries are dependent through trade, other things follow. AT the same time, we have to be watchful in terms of security measures. I think educated youth people from both countries wants to be each others partner in growth and make this region vibrant economic hub. Rather spending money in arms race, both countries need to focus on education, water and basic habitation needs. Past needs to be forgotten.
First of all action should be taken against terror and terrorism in
pakistan.Then after india should open its borders for business deal with
pakistan govt.this is not the right time to start business deal with
pakistan govt.
This is good news, it will increase the credit flow between the two
countries and will help businesses.
This is a good move, these many years we fought with each other now
lets fight for mutual development now. Only gain is going to happen. Weather joins hands with Pakistan or not terrorist threats are always
going to be there. I think by this kind of development terrorists
might learn a lesson and drop evil doings. Wheat, Basmati rice,etc
prices might come down.. Pakistan boasts as one of the largest producers of natural commodities and has the 10th largest labour market in the world, so it will be a win win situation for both countries... Good people and bad people are there is both countries.. It's us to decide who you want to be. "Good" or "Bad"?
This is a fantastic development, and would lead to the european type of integration in
the Indian subcontinent.
We have to forget the past and move on in the real world.
@Sadasivan - I fully agree with you. No action has been taken against terror and terrorists in Pakistan. Why should India open up its borders for business deals that benefit the Pakistani govt? India is very foolish and is being hood-winked again.
the trade ties which was agreed by our minister with visiting pakistani minister will enhance our relationship with pakistan and this could being a wonderful step towards maintainig relationship with our neighbour country.
I appreciate the effort and initiative taken by both country. There will always be some body who will be criticizing the things, but Start with any thing is good. It will lead to further increase of business ties between both countries. At some point of time , the both goverment will have to understand that mutual agreement is a only way for resolving the disputes.
Please give a chance to trade to establish good relationship between India & Pakistan.By back door like Dubia & Singapore a lot of illegal trade is going on, if the same has been legalized, it will trun around the fate of Indian & Pakistani people, pleas give a chance to develop the trust between India & Pakistan, we spend 65 years in this hate ride & blame game, now let the trade & people to people contact to establish biliteral ties between the two countries. We have extremist & terriorst here & trade & economic liberslization will be a huge set back for these terriorst here in Pakistan.
This is not the way to start trade ties. Instead of starting with opening banks on both sides, they should first form a common trade associations, joint efforts for textile sectors, mutual agreements on sugar import/exports and water & power sharing. Increase the trade and share of exports to Pak and then only go for easing out the monetary settlements. This would increase the threat of terrorist by easing financial transactions for their procurements etc.
Good move, indeed. But the question coming to my mind is "How far this goodwill gesture have its impact in reduction of our spending on weapons and increased investment in education, poverty, living standard?"
This is height of stupidity and anti-India policy.The same mistake as that of Prithvi Raj Singh Chauhan.Under the indira congress party and M M Singh india has NO HOPE!
This is a good move by the Indian government to have friendly ties with the neighboring country, which can also act as a better gateway for trade with oil rich nations.It also strengthens the economic stability in South Asian region.But it could have been much better if the same had come after making the Pak government to agree for the commitment to curb the terrorist activity against India.After all 26/11 is not a small scar to forget.. and we have to make sure none of such kind happens again from the nation who really value our support in trade and politics..
Excellent ! Earlier these steps are taken and sincere efforts are made
to normalize the interactions between the two countries, it is better for the ordinary citizens of both the countries who do not want any war at any time. They simply want their ordinary 'roti' to eat and 'a television serial 'to watch in their lives.
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