60 percent fall in Indo-Pak trade post Mumbai terror attacks: FICCI

March 10th, 2009 - 3:19 pm ICT by ANI  

New Delhi, Mar. 10 (ANI): As a result of deteriorating indo-Pak relations post the Mumbai terror attacks, cross-border trade is likely to witness a sixty percent decline in fiscal 2009-10. The trade relatio has hit the new low because Indian exporters are scared from doing business with Pakistani businessmen, a FICCI survey has revealed. The Federation of Indian Chambers of Commerce and Industry (FICCI) surveyed Indian exporters and importers doing business with Pakistan revealed the overall trade, presently at a little over two billion dollars, is likely to fall to 900 million dollars in the current year. According to the report, the Indian export companies were unwilling to travel to Pakistan to conclude even finalized deals. The poll said the tumultuous situation in Pakistan has created a fear psychosis amongst Indian exporters and importers who say, cross-border travel has been greatly reduced. Most of the Indian companies were using wait and watch strategy, the FICCI report said. However, while bilateral trade might be reducing, some Indian exporters and importers were taking advantage of third-country channels such as Dubai and Singapore, to service the Pakistani market. The key sectors which would see a significant decline in cross-border trade with Pakistan include textile and apparel, textile machinery, cotton, agricultural products, particularly cereals, steel and chemicals. (ANI)

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