A story on the subject from the February issue of the Business Digest published by FICCI.

1. BUSINESS DIGEST VOL. NO. 8 ISSUE NO. 11 FEBRUARY 2012
A time to rekindle the future
The India show
goes to Lahore

2. Inside…
BUSINESS DIGEST VOL. NO. 8 ISSUE NO. 11 FEBRUARY 2012
Chairman
Dr. Rajiv Kumar
Editor
14
Cover Story:
A time to rekindle the future
The India show
Meera Kumar
» The ‘India Show’ goes to Lahore goes to Lahore
Managing Editor » Benefits of two-way trade
Sukumar Sah » Potential areas of cooperation
Advertising & Circulation
Animesh Goswami 4 Secretary General’s Message
PL Joseph
Veena Srivastava
Rahul Siwach
6 Fiscal viability, delivery outcomes of Food Subsidy Bill in doubt
Dinesh Bhandari
10 500 million Indians will need new homes in urban areas by 2025:
FICCI Report
Design & Art
www.seemasethidesign.com
22 Gradual shift in global economic power
© All Rights are reserved.
No part of this publication may be 24 ‘Introduce National Policy on Railways’
reproduced, stored in a retrieval
system, or transmitted in any form or 25 Financing of PPPs, major challenge for banks: FICCI-E&Y Paper
by any means, Electronic, Mechanical,
Photocopying, Recording and/or
otherwise without the prior written 26 Ashwani Kumar for ‘frugal innovation’ to produce quality
products cheaply
permission of the Publisher.
Statement about Ownership and other
28 Financial literacy for retail investors vital
Particulars about the Journal (FICCI
Business Digest) required to be
32 India should stay on reforms course, says Financial Times’ Martin Wolf
published under Rule 8 of the
Registrar Central Rules, 1956.
36 NDMA concern at capability to deal with chemical and biological
disasters
Printed and Published by Secretary
General on behalf of (or owned by) 37 Threat perception of chemical, bio-terrorism is high: Gen. Vij
Federation of Indian Chambers of
Commerce and Industry, New Delhi 38 Promoting safe use of industrial chemicals
and Published at Federation House
Tansen Marg, New Delhi - 110001 40 Macro-economic indicators
R.N.I No. DELENG/2004/13722
Federation of Indian Chambers
of Commerce and Industry, FICCI,
Federation House, Tansen Marg,
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2 || FICCI Business Digest || February 2012

3. SECRETARY GENERAL’S MESSAGE
Dear Reader,
O ur special feature in this issue focuses on FICCI’s leading priority,
which is to contribute to improving India-Pakistan relations and
economic ties. As a part of this FICCI organized the ‘India Show’ at
Lahore and took a delegation of about 100 businessmen to Lahore,
Karachi and Islamabad. The effort is helping the two neighbours to
recognize their enormous potential and the benefits of collaboration.
The delegation was led by Minister of Commerce, Anand Sharma.
Both countries are coming to recognize that India Pakistan trade
amounts to less than 1 per cent of their respective global trade, a
Dr. Rajiv Kumar
travesty when the potential for bilateral trade between the two countries
is tremendous. We were somewhat disappointed that contrary to our
expectations, the Pakistan cabinet shelved the decision to phase out the
positive list and replace it with a negative list as the basis for conducting
bilateral trade. But this disappointment has since given way to strong
optimism with the announcement late February by the Pakistan
government to adopt this historical step and to move to a full-fledged
MFN based trade regime with India by the end of the year. FICCI’s
efforts will stand vindicated once the two countries begin to trade,
invest and allow movement of persons across each other’s borders as
any other neighbors are expected to do.
To move to another vitally important subject, here are some stark facts
- by 2025 nearly 500 million Indians will need new, urban homes, close
to the needs of China, North America and Western Europe combined.
India’s population is slated to grow to 1.7 billion by 2050 and rapid
urbanization will add nearly 900 million people to its cities.
City capacity will need to grow nearly 400 per cent in less than 50 years.
This is the scale of urbanization and urban infrastructure needs India
has to contend with. We present some interesting perspectives on this
matter in this issue.
You can also read Martin Wolf’s views regarding the lessons India
should learn from the European crisis in forming its own policies.
Martin Wolf, renowned commentator of the Financial Times suggests
two big lessons; his lecture at FICCI was very well received – you will
enjoy reading the conclusions he draws for India.
We also bring you President Kanoria’s article on how businesses and
national governments are coping with the gradual shift in global
economic power which appeared in The Economic Times of February
9, 2012. This issue also carries an excerpted article authored by me and
Dr. Soumya Kanti Ghosh on the pitfalls of the food subsidy program on
which our government has embarked in full measure.
We at FICCI would be delighted to get your feedback.
4 || FICCI Business Digest || February 2012

4. COVER STORY
The ‘India Show’ goes to Lahore
Rekindling The Future
Anand Sharma, India’s Commerce & Industry and Textiles (2nd from right) with Makhdoom Amin Fahim, Pakistan’s Senior fedral Minister for
Commerce, at the ‘India Show’ in Lahore.
F
ebruary 13, 2012 will go FICCI in association with the
down in the history of India- India’s Commerce and Industry
Pakistan relations as the day Ministry, and with the support of
when commerce scored over politics; Commerce Ministry of Pakistan
a day when the business leaders of organized the first ever exhibition of
both nations embraced one another; Indian products in Pakistan (Lahore)
when Indian CEOs walked the extra at the Lahore Expo Centre from
mile right through the Attari-Wagah February 11-13, 2012. The India
The popular sentiment border their Commerce Minister, Show was inaugurated by Makhdoom
breaking down, as it were, the ‘Berlin Amin Fahim, Senior Federal Minister
voiced by the business Wall of Asia’. for Commerce, Government of
community in Pakistan India-Pakistan trade has Pakistan. Fifty six Indian companies
historically been low due to decades put up 110 stalls showcasing India’s
is in favour of opening of hostilities and mistrust between accomplishments in sectors such
borders to promote the two countries; currently the as agricultural machinery and farm
peace. A majority trade volume is stagnating at US$ 2.7 equipments, automobile components,
billion. This is surely set to change; apparels, consumer durables, tea,
of the chambers of the US$ 6 billion trade target by 2014 coffee, herbal products, home
commerce of Pakistan seems within grasp. appliances and gems and jewellery.
More than 120 Indian business The three-day exhibition saw footfalls
have conveyed to the leaders visited Lahore, Karachi and of more than 60,000, with a large
Pakistan Government Islamabad from February 13-15 to number of Pakistani people truning
participate in meetings organized up religiously for the show every day.
that it is time to put by the Chambers of Commerce Indian exhibitors were overw-
in place a liberal trade and Industry of Lahore, Karachi, helmed by the response to their stalls.
Rawalpindi and Federation of Many exhibitors who had got limited
regime. Pakistan Chambers of Commerce samples for display gave them away
and Industry which were addressed as a goodwill gesture to the visitors at
by the Commerce Ministers of India their stalls. Some did brisk business
and Pakistan and Presidents of like the water purifier maker, Kent,
FICCI and CII. which received several queries and is
14 || FICCI Business Digest || February 2012

5. COVER STORY
R. V. Kanoria, President, FICCI, presenting a memento to Makhdoom Amin Fahim. Anand Sharma (left) looks on.
now exploring the possibility of tying accrue from it. He also said that the Former FICCI President, Rajan
up with local distributors and dealers India Show at Lahore had kicked off a Bharti Mittal, expressed deep
in Pakistan to market its goods. new phase in the trade and economic satisfaction over the “historic’
Anand Sharma, Indian Commerce, engagements of India and Pakistan visit and emphasized the need to
Industry and Textiles Minister, and that the visit would consolidate introduce a more liberal visa regime.
presided over the closing function people-to-people exchanges between “A businessman can’t function with a
of the India Show. FICCI President, the two countries. The Indian Com- city specific visa that does not allow
R V Kanoria, addressing the gath- merce Minister along with senior him to visit more than one city.
ering on this occasion expressed business leaders from India including While it is alright to have a more
optimism about the interest that this FICCI President called on the restrictive visa regime due to security
historic visit would generate and the Governors and Chief Ministers of reasons, in the case of businessman
gains that both the countries would Punjab and Sind. there is a strong case for easing rules
to promote trade and commerce,”
he observed.
Top Five Export Items from India to Pakistan (Figure In USD Million) FICCI President, R V Kanoria
felt that India has to be more
S. No. HS Code Commodity 2009-2010 2010-11 accommodating with Pakistan in
importing goods such as cement in
1 17 Sugars and Sugar 1.07 654.01 which Pakistan has a compataive
Confectionary advantage so that the trade imbalance
against Pakistan is reduced.
2 52 Cotton 242.77 401.82 The popular sentiment voiced by
the business community in Pakistan
3 29 Organic Chemicals 308.29 273.78 is in favour of opening borders to
promote peace. A majority of the
4 54 Man-made Filaments 419.78 234 chambers of commerce of Pakistan
have conveyed to the Pakistan
5 7 Edible Vegetables and 59.85 74.05 Government that it is time to put
Certain Roots and Tubers in place a liberal trade regime.
The focus must shifted to direct
Source: Ministry of Commerce and Industry, Govt. of India trade between the two countries.
February 2012 || FICCI Business Digest || 15

6. COVER STORY
A Pakistani businessmen trading with
the Indian Oil Corporation pointed
out that there was demand of 30,000
million tons of petrochemicals per
month from Pakistan which could
increase three-fold if trade is allowed
in this commodity through the
Wagah Border.
It’s interesting to note that info-
rmal trade, including third country
trade, between India and Pakistan
is estimated at USD 10 billion while
the formal trade is only about US$ 3
billion. Trade through third countries
or the circular trade is mainly
conducted through agents operating
in free ports like Dubai or Singapore
and the Central Asian Republic
(CAR) countries. Indian business leaders with Commerce Ministers of India and Pakistan.
The fact that a large number of
items are traded between India and
Pakistan through informal channels
presents the case for potential increase
in bilateral trade. The informal trade A long standing demand of India India-Pakistan trade
between the two countries mainly which has been accepted by the
takes place through two routes: One Pakistani establishment is the easy has historically been
is smuggling across the borders and availability of visas and easing people low due to decades of
other is through a more circuitous to people contact. In a Joint Statement
route, involving a third country. issued at Islamabad at the conclusion hostilities and mistrust
Informal trade happens in goods of the official level bilateral talks, between the two
that are not on Pakistan’s positive the Commerce Ministers of India
list and hence cannot be imported and Pakistan said that it has been countries; currently
legally (Pharmaceuticals, cosmetics, decided, in principle, to give multiple the trade volume is
jewellery) and have a high import visas to businessmen and modalities
tariff in Pakistan (e.g. betel leaves and are being worked out. Agreements
stagnating at US$ 2.7
tractor tyres. Estimates of informal are also being framed on cooperation billion. This is surely
trade vary from US$ 500 million and mutual assistance in customs
to five times the size of the formal matters, bilateral cooperation
set to change; the US$
trade. The main items of import from on mutual recognition between 6 billion trade target
India are cloth, tires, pharmaceutical Pakistan Standards and Quality by 2014 seems within
and textile machinery, cosmetics, Control Authority and Bureau of
livestock and medicines. They acco- Indian Standards and Redressal of grasp.
unt for roughly 80 per cent of the Trade Grievances between Pakistan
total import value. and India.
Top Five Import Items from Pakistan to India (Figure In USD Million)
S. No. HS Code Commodity 2009-2010 2010-11
1 8 Edible Fruit and Nuts; Peel or Citrus Fruit or Melons 46.41 62.98
2 27 Mineral Fuels, Mineral Oils and Products of their Distillation, 9.55 56.99
Bituminous Substances, Mineral Waxes
3 25 Salt; Sulphur; Earths and Stone; Plastering Materials; 42.58 40.43
Lime and Cement
4 29 Organic Chemicals 47.01 32.67
5 52 Cotton 39.1 22.24
Source: Ministry of Commerce and Industry, Govt. of India
16 || FICCI Business Digest || February 2012

7. COVER STORY
Reduction in Cost if imported from India
Sector Pakistan’s Cost Reduction if
Imported from India (in per cent)
Steel 55
Transport Equipment 26
Engineering Goods 15
Bicycles 20
Pharmaceuticals 35
Fruits & Vegetables 40
Sugar 30
Source: FICCI Survey (2009)
While Pakistan’s informal exports
mainly consists of textiles, 88 per
cent of these trades are routed
through third countries. The main
implications of informal trade are:
loss of revenue for the exchequer and
increased cost for the consumers.
The cost of transportation goes up
by 1.4 to 1.7 times when the indirect
route Mumbai- Dubai-Karachi is
used instead of the direct route
Mumbai – Karachi. This is a clear
indication that Pakistan should open
up its trade with India. The major
routes for informal trades are from
Dubai, Singapore and Afghanistan.
In the area of infrastructure and L to R: B. Muthuraman, President, CII; Partap Singh Bajwa, Member of Parliament;
Anand Sharma, India’s Commerce & Industry and Textiles; Makhdoom Amin Fahim, Pakistan’s
issues of connectivity to boost trade
Senior Federal Minister for Commerce; Javed Akhtar Bhatti, President, Rawalpindi Chamber of
and commerce, important items Commerce and R. V. Kanoria, President, FICCI.
in FICCI’s wish list, the Indian
Commerce Minister hoped that the
construction of an integrated check- and incomes of people, besides produce cost-effective quality goods.
post at the Wagah – Attari Border facilitating the development of cold The Board of Investment has
would be complete and ready by April chains, warehouses and logistics indicated that Pakistan has so
this year. Earlier, it was expected in the border areas like which can far made bila-teral investment
to be completed by February. It is immensely transform the region. agreements with 46 countries (except
estimated that the new gate which Pakistan does not have restriction India) during the period from 1959
leads to the integrated check-post on Indian investments whereas to 2004. Currently, there is no joint
at Wagah would help increase the India does not have FDI from venture between India and Pakistan
number of trucks transporting Pakistan at present. According to despite of a strong business interest
goods through Wagah – Attari from Anand Sharma, India is actively on both sides due to the absence of
the current 100-150 to 500 – 600. contemplating changes in the foreign an enabling environment for such
India and Pakistan are also in talks Exchange Management Act (FEMA) investment. For example, there are no
discussing opening another trade to all foreign direct investment from institutional mechanisms for bilateral
route in the Munabao - Khokrapar Pakistan. investment guarantees. There is
route. A Joint Working Group is As India and Pakistan compete to considerable lack of information and
examining the feasibility of the new sell their goods in the global market, awareness about each other’s trade
trading point. Any increase in trade there are many areas in which regime, commercial policies and
through the land route will have both the countries can complement business and regulatory procedures.
spin-off effects on the infrastructure each other’s needs and hence
February 2012 || FICCI Business Digest || 17

8. COVER STORY
Potential Joint Ventures between
India and Pakistan
SAARC Chamber of Commerce and
Industry has identified investment
possibilities in Pakistan in sectors
such as fish processing, chemicals
and pharmaceuticals, automobile
components and information
technology.
A study commissioned by FICCI
jointly with SAARC Chamber of
Commerce & Industry and formu-
lated by Tata Economic Consu-ltancy
Services outlines the industrial in-
vestment opportunities & scope for
joint venture in SAARC Countries.
The potential Joint ventures
identified between India and Pakistan
Vikramjit Sahney, President, SAARC Chamber of Commerce & Industry addressing a business
are the following: meeting in Karachi.
Industry Group Project Focus
Information Software Exports Training Centre / Center for Software Training & Management (CSTM) Software
Technology (IT) Development Center (SDC).
Pakistan has the potential to become an important software exporting and training center.
India can become a role model & both the countries should co-operate & collaborate to tap the large
global market for software.
Fish Processing Processed Frozen / Canned Fish Products
Future thrust should be on valve added canned products exports to the developed countries
Drugs and Bulk Drugs
Pharmaceuticals Expansion of formulation sector (tablets, capsules, ointment, injections etc.).
Expansion of health care products (IV fluids, disposable syringes, diagnostic kits etc.).
Indian pharma industry can provide the necessary support & assistance to Pakistan for the expansion
of its Industry.
Agro-Chemicals A pesticides manufacturing Unit in Pakistan.
With the expansion of agri business, demand for agro chemicals will grow in future.
Indian major players can play an important role through transfer of technology.
Chemicals Dyes and pigments manufacturing unit in Pakistan
Pakistan has a strong manufacturing base for textiles and leather.
Indian players and multinationals can assist Pakistan in developing the sector.
Automobile Integrated auto component complex.
Ancillary Next to India, Pakistan is the only country in the SAARC
Region to Manufacture & Assemble Passenger Cars.
Pakistan may also consider Assembly of HCV & LCV in collaboration with Tata Motors /
Ashok Leyland from India.
Light Engineering L P G cylinder manufacturing unit in Pakistan
Technology can be sourced from India.
Scope for Inclusion of cylinders for Industrial Gases.
Leather Manufacturing complex for a variety of value added
processing Leather Footwear
complex: value Leather Garments
added products Leather Bags
for exports Pakistan & India should cooperate to Tap the Global Market and expand Market Share.
18 || FICCI Business Digest || February 2012

9. COVER STORY
India’s initiative found a more
than adequate resonance in the
Pakistani establishment. With the
recent announcement by Pakistan
of a negative list of items importable
from India and its commitment to
grant Most Favoured Nation (MFN)
status to India by the end of this The sentiment today on both sides
year, quite suddenly the prospects of the border is optimistic, one that
of reaping the advantages from the give gives rise to anticipation and
SAFTA agreement have brightened. hope of rekindling the future.
Comparison with other SAARC Countries
Country Population (in million) 2010 est. GDP, PPP (constant 2005 Total Trade with India in
billion international $) 2010-11 (in USD billion)
Bangladesh 148.69 221 (2010 est.) 4.05
Sri Lanka 20.86 95 (2010 est.) 4.54
Pakistan 173.59 419 (2010 est.) 2.67
Source: WDI & Ministry of Commerce and Industry, India
Benefits of Potential Areas of Cooperation
two-way trade
Agriculture: India and Pakistan, both Cement: There has been sharp
agrarian economies, could cooperate increase of export of cement from
India Pakistan trade amounts in agricultural sector which is a Pakistan to India in recent past
to less than 1 per cent of their major component of GDP and largest because of the increasing demand
respective global trade. However, employment generating sector in either in India. This is due to the boom in
the volumes of third country trade country. The food and agri- business the housing and construction sector.
and informal trade indicate the industry has a significant impact on Rising trade in cement is win-win
tremendous potential for bilateral the regional economy. This industry situation for both countries and will
trade between the two countries. has one of the highest economic help Pakistan to reduce its trade
Several restrictions on official multiplier effects among the various deficit with India.
trade compel both the countries industries even ahead of telecom or
to import certain goods from far power. Liberalized India-Pakistan Engineering Industry: Trade libera-
off sources, which they can easily trade in agro sector would give further lization with India especially for
import from each other. India boost to employment generation in iron ore which is an important raw
Pakistan trade would ensure both the countries. The recent export material for steel industries will place
cheaper raw materials and low of sugar, onion, tomato, fresh meat and the engineering goods industry of
transportation and insurance
live animals from India to Pakistan Pakistan at a significant advantage
helped Pakistan to overcome short- by bringing down prices of steel and
cost which would translate into
term fluctuations in supply. that of finished engineering goods. At
quality goods at competitive prices
Trade in agriculture between present, Pakistan imports basic raw
for both the countries. While
India and Pakistan till date has been material, iron ore, at a high cost from
consumers would gain in terms crisis driven. However, if a robust Brazil and Australia.
of lower prices, higher purchasing regulatory mechanism is put in place
power and greater choice of traded in both the countries, agriculture Transport Equipment: As a conse-
goods; manufacturers will have trade could well become market quence of high protection provided
access to the wider markets in the driven. Integration of markets across to domestic auto assemblers (two
neighbourhood. The Government the border would have a favorable & four wheelers) prices paid by
would have revenue gains by impact on agriculture trade as it Pakistan consumers are substantially
bringing informal trade into the shall even out fluctuations in supply, higher than comparable prices
formal channel. Ultimately, this moderate prices and provide a wider internationally. Bicycle is another
would result in a win-win situation basket of agricultural goods for category where Indian products
for everyone. consumption. could impact the Pakistan market
February 2012 || FICCI Business Digest || 19

10. COVER STORY
can particularly help to enhance
competitiveness of its leading export
sectors i.e. textile and leather.
Plastics: Pakistan’s plastic products
could dominate Indian market but
for that high cost. This is largely
due to the machinery imported by
this industry from Taiwan, Korea
and Germany. This machinery can
be made available from India at
competitive rates.
Textiles: Pakistan has competitive
advantage in cotton textile products
which need to be revitalized. India,
on the other hand, has an upper
hand in silk and other synthetic fibre.
The opening up of trade will help
Pakistan to acquire textile chemicals
R. V. Kanoria, President, FICCI, addressing a particularly if tariffs were to be and other inputs at cheaper rates and
business meeting. lowered. India’s comparative advan- thus to make their products more
tage lies in its lower steel price competitive in international market.
together with scale economies.
Petroleum Products: As of now,
Tea: Pakistan has recently emerged Pakistan has banned imports of
Trade in agriculture as the largest market for exports of Indian petrol. Though it allowed diesel
between India and Indian tea. India’s share of Pakistani imports in 2009, due to preferential
tea market has increased in recent prices offered by Pakistan’s allies such
Pakistan till date has times, however still remains low. as Kuwait, supplies from India did
been crisis driven. Pakistan has been sourcing most of not really take off.
its tea from Kenya. There is immense However, India has offered to
However, if a robust potential for Indian tea in the export petrol, diesel, and aviation
regulatory mechanism Pakistani tea market. turbine fuel, fuel oil, besides sulphur,
polyethylene and polypropylene to
is put in place in both Pharmaceutical: Considering that the neighbour. Pakistan is currently
importing these products from other
countries, agriculture Indian pharmaceutical products are
countries. Imports from India will be
cheaper than Pakistani products, it
trade could well become would certainly make a difference advantageous for Pakistan as it will
be saving on the freight cost since
market driven. to the common citizen in Pakistan.
several Indian refineries are located
In turn, this would help Indian
pharmaceutical products including close to the India-Pakistan border.
bulk drugs and formulation to sell The refiners who will benefit include
in large volumes in geographically Indian Oil Corporation, Reliance
proximate markets besides impacting Industries, Essar Oil, and the soon
positively on industrial growth. to be fully commissioned refinery
at Bhatinda.
Textile Machinery: In Pakistan, there
is no high-tech textile machinery Information Technology: India has
industry. The opening of trade with established itself as a major player in
India would help Pakistan to acquire the information technology segment.
this machinery directly at much The software industry in Pakistan
lower prices rather than high cost is still in its nascent stages though
machinery from Germany. Recently, it has a huge potential to emerge
Pakistan has allowed the imports as a major software exporting and
of Textile Machinery from India. training centre. India and Pakistan
However, all categories of Textile could enter into joint ventures to
Machinery and its components are tap the global market for software.
still not allowed. The prospects for success in this
sector seem to be good. As the basis
Chemicals: Import of cheaper of India’s comparative advantage in
chemicals and dyes from India IT – low cost and qualified English-
20 || FICCI Business Digest || February 2012

11. COVER STORY
Afghanistan to get its share of 38
million standard cubic meters a day
of gas through the pipeline, while
Islamabad will pay ferrying charges
to Afghanistan.
Iran-Pakistan-India (IPI) pipeline
project is a 2700 km pipeline from
Iran’s South Pars fields in the Persian
Gulf to Pakistan’s major cities of
Karachi and Multan and then further
to Delhi, India. Iran is offering to cover
60 percent of the construction costs
of the pipeline. A land-based pipeline
would be four times cheaper than
any other option, even after taking
into account transit fee payments to
Pakistan. Pakistan could earn transit
Javed Akhtar Bhatti, President, Rawalpindi Chamber of Commerce presenting a memento to fees from the pipeline and also would
R. V. Kanoria, President, FICCI. be able to purchase natural gas from
the pipeline. Pakistan is expected
to earn about $200-$500 million
speaking technical personnel – is entertainment industry can be tapped in transit fee. India would benefit
replicable in Pakistan. In terms by encouraging joint productions. from diversified sources of pipeline
of infrastructure requirements Removing the ban on screening gas and lower dependence on more
on Pakistan too, the IT sector is movies would benefit both countries. expensive liquid natural gas (LNG).
relatively less demanding, both in Exchanging broadcasting rights to Even with LNG prices dropping,
terms of sheer scale of investment and telecast each other’s programmes industry sources believe that there
challenges of security management. on television is yet another trade would be a significant cost advantage,
The Indian IT training market opportunity for the two countries. especially to a pipeline from Iran.
has also grown significantly. Several Removal of visa restrictions would Both these projects present a win-
training institutions such as NIIT, encourage individuals to participate in win opportunity for both India and
APTECH and SSI have set up each other’s entertainment industries. Pakistan and can go a long way in
training centers in many countries meeting the energy requirements
including South Asian countries. The Energy Benefit: The greatest in one of the world’s fastest growing
India and Pakistan could enter into economic benefit of trade relations regions. Energy cooperation between
collaborative arrangements to set up between India and Pakistan would India and Pakistan would have a
training institutes in Pakistan which occur in the sphere of energy stabilizing effect on the region as
would enable enlarge the technical cooperation. India is one of the most a whole.
workforce in Pakistan). rapidly growing energy markets In recent times Pakistan has been
in the world and will be able to facing a major power shortage, from
Tourism: Tourism holds immense absorb new sources of supply as they both gas and electricity sources.
potential for the two countries. materialize in the region. Pakistan’s In this regard India and Pakistan are
A liberal visa regime as well as potential role in fulfilling this need
considering the option of electricity
improved transport linkages would is not as a supplier but as a potential
trading. The first meeting of the
go a long way in improving tourism transit route for energy from Iran
Joint Group of Experts to examine
between the two nations and Central Asia. This would require
feasibility of trade of electricity was
construction of one or more new
pipelines, a major capital investment held on 20th October 2011 at New
Health: Pakistani patients could also
come to India for treatment. Easing that makes sense only if the political Delhi. Central Electricity Authority
visa restrictions would greatly help stability and economic feasibility of and Power Grid Corporation of India
Pakistanis to come for treatment. So the project can be counted on. limited/Power System Operation
far, only a handful of Pakistani patients The economics look very Corporation Ltd have been designated
have visited India for treatment. promising. The two major proj- as the nodal technical agencies from
Removal of visa restrictions for ects under consideration for a the Indian side. They are interacting
patients, and for doctors would very long period of time are the with National Transmission and
greatly facilitate such trade. Iran-Pakistan-India (IPI) pipeline Dispatch Company Ltd of Pakistan
and Turkeministan-Afghanistan- to work out the optimal technical
Entertainment: The common Pakistan-India (TAPI) pipeline. solutions for grid connectivity
culture and language between India The TAPI pipeline project is between both countries. A broad
and Pakistan facilitate immense approximately pegged at a cost of understanding has been reached on
opportunities for trade and coope- USD 7.6 billion. As per the latest possible grid connectivity between
ration in the film, television and arrangement agreed on - India Amritsar-Lahore to enable trade of
music sector. This potential in the will pay transit fee to Pakistan and up to 500 MW of power.
February 2012 || FICCI Business Digest || 21

12. What are the benefits of FICCI membership?
Who should I contact at FICCI regarding sectoral queries?
What are the benefits of FICCI’s B2B services and how can I avail this service?
What are the various services offered by FICCI?
Does FICCI have an impressive membership?
Will this membership be applicable worldwide?
members’ helpline
Members who have questions, concerns or
queries related to matters of policy or any
FICCI activities should contact :
Sudeshna Banerjee
Deputy Director
Toll Free: 1800-11-3128
membershelpline@ficci.com
Federation House, 1 Tansen Marg
New Delhi 110001