CROSS-LINE OF CONTROL TRADE: PROBLEMS AND PROSPECTS

Abstract

The India-Pakistan dispute over Kashmir is one of the most intractable disputes in the contemporary world. Generally, both countries have pursued policies that revolved around their concerns about territoriality and sovereignty over Kashmir. However, in the last decade or so particularly after the revival of Composite Dialogue process in 2004, both countries are moving slowly from the state-centric to a people-centric approach by encouraging movement of people, goods and ideas across the heavily militarized Line of Control (LOC). One significant development in recent years has been the beginning of Cross-LoC trade in October 2008. It was 65 years ago in 1947 that trade across LoC had stopped. This paper deals with the nitty-gritty of Cross-LoC trade. It examines how business entities and individuals in the state view trade transactions with the other side and perceptions about the economic viability of Cross-LoC trade. It also investigates into the problems and prospects of conducting this duty free trade. Cross-LoC travel and trade has the potential to create transformational spaces which will help ease tensions over Kashmir and bring in the people of state to the centre stage in addressing the Kashmir issue.