India International Trade Fair: Pakistani businessmen irked by imposition of heavy taxes on goods

30 Nov, 2012

The Indian authorities created serious problems for the Pakistani businessmen during the thirty second India International Trade Fair (IITF) organised by India Trade Promotion Organisation (ITPO) from November 14 to 28 in New Dehli, India. This was the consensus of a majority of Pakistani businessmen who participated in the event and is confirmed by this correspondent who attended the fair.
Pakistani businessmen complained that the Indian Custom Authorities created serious problems for them resulting in many of them unable to participate in the ITTF as their goods were not cleared on time. They said that despite the fact that officially the Indian government has given Pakistan the most favoured nation status a few years back but yet Indian authorities are imposing heavy taxes on Pakistani goods, especially on readymade garments.
Indian custom authorities charged Rs 5 million on account of different taxes/duties to Junaid Jamshaid a leading readymade garment brand in Pakistan and his company was unable to attend the fair. In some cases these duties and taxes crossed 40 percent of total value of the product which made the products unaffordable for middle income India and resultantly these goods remained unsold.
Pakistani traders while talking to Business Recorder said that Pakistani textile goods have great potential in the Indian market as they are of superior quality and design relative to Indian products. Some 174 outlets were acquired by the Pakistani businessmen in the event which included a spices stall from National Massala, handicrafts, readymade garments, crockery and food staff.
ITTF is the largest trade fair organised in this part of the globe wherein some 6,000 exhibitors took part and displayed their products and services. More than 350 companies from 28 countries participated in this international event. The event also hosted a number of seminars and workshops along with cultural programmes and was organised by India Trade Promotion Organisation (ITPO). It was attended by many business personnel as well as delegates from about 73 countries.
The theme of the event was "Skill India", which offered great opportunities to its exhibitors to get connected with national and international delegates and establish good relationship with them in order to expand their business prospects. This correspondent experienced a major difference between official and unofficial India. Officially as a Pakistani, Indian state institutions are not welcoming. However unofficial India is eager to chat to Pakistanis. This correspondent was unable to get a hotel if he mentioned his nationality nor was he allowed to use internet cafes.
It was observed that prices of essential food items as well as other essential items in India are higher compared to Pakistan: Wheat flour cost (Pak Rs equivalent) 35 per kg in India which costs Rs 34 in Pakistan; CNG in India is available at Rs 73 per kg, which on average costs Rs 57 per kg in Pakistan; and petrol costs Rs 140 per litre in India which costs Rs 103 per litre in Pakistan.

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