India to allow foreign direct investment from Pakistan

The announcement by Trade Minister Anand Sharma, flanked by his Pakistani counterpart at a New Delhi news conference, came ahead of the opening of a second trading gate along the nations heavily militarised border later Friday.India has taken an in-principle decision to allow Pakistani FDI (foreign direct investment) in India to deepen our economic engagement, Sharma said.Sharma did not elaborate on the mechanics of the step, except to say procedural requirements were under discussion.The trade minister also said a deal to ease visa curbs on business travel between the South Asian neighbours would be ready soon.The Pakistani trade minister, Makhdoom Amin Fahim, was in New Delhi for the largest Pakistani commercial fair ever held on Indian soil, showcasing contemporary Pakistans top jewellery, furniture and clothes designers.Fahim called the opening of the trading post at the Attari-Wagah crossing between Lahore in Pakistan and the northern Indian city of Amritsar a milestone.The new trading post will see a four-fold increase in the number of trucks crossing the border daily to around 600.Official two-way trade of $2.6 billion is heavily tilted in Indias favour but unofficial trade is estimated at up to $10 billion.The trading post and Pakistans granting of Most Favoured Nation trade status to India, due to come into effect by year end, could nearly triple bilateral trade to $8 billion in two years, Indian industry chamber Assocham says.