Trade between India and Pakistan is likely to suffer a setback in the coming months and fall by 60 per cent to $900 million during 2009-10 as domestic traders are shunning the neighbouring country due to the turbulent situation there, a survey said.
There is great unwillingness on the part of Indian exporters to travel to Pakistan to conclude even the firmed up deals, the survey said adding that currently, the bilateral trade between the countries stood at over $2 billion.
The survey was conducted by industry body Ficci amongst exporters and importers doing business with Pakistan.
"The tumultuous situation in Pakistan has created a fear psychosis amongst Indian exporters and importers who say that cross border travel has been a major casualty following the recent developments in the neighboring country," it said adding that Wait and Watch is the preferred strategy for many as developments in Pakistan have become quite dramatic and unprecedented.
The key sectors that would see a significant dip in cross border trade include textile and apparel, textile machinery, cotton, agricultural products particularly cereals, steel and chemicals.