“Geopolitical Dynamics and Their Impact on Trade between India and Pakistan: A Comprehensive Analysis”

Abstract

Trade among neighboring nations holds significant economic importance, influencing the socio-economic development of countries. India and Pakistan represent one of the most persistent conflicts in contemporary international relations. The continuation of this conflict poses significant challenges to the establishment and nurturing of robust economic ties between the two nations. Deep-rooted historical animosity between neighboring nations often adversely affects regional economic relations, leading to noticeable disruption and disparities in trade patterns. This study focuses on examining the impact of geopolitical dynamics on trade relations between India and Pakistan. Bilateral trade relations between the two countries have been examined in three distinct time periods: 1965–2011, 2011–2016, and 2016 onwards. The findings revealed that whenever there were hostile relations between the two countries, their trade relations were also adversely affected. Furthermore, it is recommended that emphasizing the importance of peaceful relations is crucial for fostering bilateral trade between the two countries.