India’s merchandise exports in March at $41.68 billion
The overall exports (Merchandise and Services combined) in FY 2023-24 are estimated to be USD 776.68 Billion, exhibiting a positive growth of 0.04 per cent over FY 2022-23.
Despite the relationship hitting rock bottom, India has ruled out the possibility of withdrawing the Most Favoured Status (MFN) status it had granted to the neighbouring country more than two decades back.
“Presently, no proposal to review MFN status to Pakistan is under consideration,’” Minister of State for External Affairs MJ Akbar told the Rajya Sabha.
He said India had accorded the MFN status to all WTO members, including Pakistan, in accordance with provisions of the Article 1 of General Agreement on Tariffs and Trade, 1994. However, it was unfortunate that Pakistan has not fulfilled its international obligations in this regard, so far.
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The government’s clarification in Parliament assumes significance against the backdrop of growing chorus in the country for withdrawing the MFN status to Pakistan, which has not reciprocated the Indian gesture and continues to aid and abet terrorism on the Indian soil.
The MFN status is a level of treatment accorded by countries interested in increasing trade with each other. This status leads to certain important trade advantages such as reduced tariffs on imported goods. Special consideration is given to countries classified as “developing” by the WTO, which also enforces the status.
India had conferred the MFN status on Pakistan in 1996. Since then, it has been waiting for reciprocal steps by Islamabad.
Pakistan has already bestowed MFN status on over 100 countries, including its all-weather friend China, but has been hesitant to do so in the case of India because of the fear that Indian exporters may flood Pakistani markets with their merchandise once normal trade is allowed.
In fact, terrorist outfits, including the Lashkar-e-Taiba (LeT) and the Hizb-ul-Mujahideen (HuM), have also opposed any move to grant MFN status to India.
The granting of MFN status to India was also part of the India-Pakistan composite dialogue, which was suspended by New Delhi following the beheading of Indian soldiers in January 2013.
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