Trade with India - good or bad

If there was Free trade with India - would not Pakistani goods have an extra + 1 billion people market?. That is almost 10 times bigger market, whereas for India it would mean an additional 10% increase.

Would not the lower Pakistani Rupees value ensure that goods produced in Pakistan would be cheaper?And goods made in India would be more expensive due to the higher rupee value?

So is it not better for Pakistan to have a free trade agreement with Inida?

What could be the negatives (or other positives)

Re: Trade with India - good or bad

Bad

Whatever trade is happening at present is hugely skewed in favour of India. India still has a much larger and cheaper work force and better energy resources putting Pak industry at disadvantage.

Re: Trade with India - good or bad

Is the above correct that India labor is cheaper than in Pakistan? May be I am confusing between per capita income and wages - I read India per capita income is higher than Pakistan, so I thought that was because of higher wages in India.

Is there any stats available on this anywhere?

Re: Trade with India - good or bad

Icono - If India's wages are lower but per capita is higher.

If the value of the Indian Rupee is higher than Pakistani Rupee, yet pakistan cannot sell goods cheaper than India.

Something seems wrong here?

Re: Trade with India - good or bad

until deep dirty politics and animosity is not cleared, cant be trusted either way.

Re: Trade with India - good or bad

China & USA trade is in Billions of dollars per year- yet USA does not trust nor like China.

USA fetes the Dalai Lama, supports Taiwan militarily against China - should China be like Pakistan and not trade with USA?

Same is the case with Indo - China trade, it too is growing in the billions!! Despite the mistrust and rivalery.

Its about time Pakistan stoped cutting it's nose to spite India

Re: Trade with India - good or bad

trading wat?

Re: Trade with India - good or bad

i dono much about economics but i wish they'd inter-trade, and fill the gaps for what is being imported from out of central asia at the moment, whatever those goods maybe. both would benefit from it greatly and prospour together.

I agree with Malhot about trust or not being a factor, it's all about supply, if u can produce, you can sell, it has nothing to do with liking or disliking who you're buying from or selling to.