When India’s commerce and industry minister met his Pakistani counterpart to talk trade, the excitement was palpable.

At the Wagah border, a half-hour drive from Amritsar, the early morning chill melted away as the bilateral warmth spread.

Anand Sharma, India’s minister, leading a historical delegation to Pakistan to continue the process that will lead to the dismantling of all trade barriers between the two neighbours, was greeted by Pakistan’s minister Amin Fahim at the border crossing on Monday, giving out signals loaded with meaning to industrialists in both countries.

While Pakistan granting India the most-favoured nation status is still a few rounds of discussions away, both ministers exuded confidence that the proposed integrated Gate 2 at Attari-Wagah would open for trade before April 30.

“We are very clear that there is an expressed wish and commitment from both governments to do what we agreed to do. During the visit, there will be new bonds of understanding to strengthen the relationship,” Sharma said at a crowded media briefing just after crossing into Pakistan. The most important issue of moving to a negative list from the positive list of 1,938 items (import policy order of Pakistan 2008) that effectively restricts exports from India still remains to be sorted out.

“The secretaries of commerce of both sides met twice and are discussing the issue,” said Fahim.

Both refused to comment on what was holding up the negotiations. The February deadline committed to by two sides is fast approaching. The Indian delegation is excited about the prospects of a big market opening up, but is peeved at the tardy process made by the two governments.

Sunil Kant Munjal, joint managing director of Hero MotoCorp, told Financial Chronicle that the delegation would help in two ways: “First, there is much effort under way to create bad sentiments…which will be removed completely. Second, opening of the markets will benefit people from both countries.” Arun Nanda, chairman of Club Mahindra Holidays, who is in the delegation, is visiting Pakistan for the first time. “I am studying Pakistan,” he told FC.

Most biggies of India Inc believe it is purely a political issue. Rajan Bharti Mittal, vice-chairman and managing director of Bharti Enterprises, says building infrastructure for roaming is not a big issue. Another half-an-hour drive from the border along a straight highway and a few crowded and dusty junctions later is the massive Lahore Expo Convention Centre, which is hosting the “India Show — Land of Limitless Opportunities,” supported by India’s commerce ministry, Ficci and India Brand Equity Foundation (IBEF).

Over 200 Indian companies trying to get a business foothold in Pakistan have opened stalls at the centre. MMTC, Essar Steel, Gitanjali, Spice Board and The Lalit are among those present. At the exhibition, a slew of small-time traders from various Pakistani cities are anxiously waiting for their government to get the Indian market opened for them.

Amin Jaffrani, who owns re-rolling mills in Karachi, said it was high time his government opened the gates for India and to. “I am looking at buying machinery from India, where they are probably available at a discount,” he said.

Dismissing the fears of Pakistani companies about Indian goods flooding their markets, the Indian minister reassured them that a lot of goods would also pass through the border in the other direction to meet India’s requirements.

The Lahore-based The Nation on Sunday reported Fahim’s call to local pharmaceutical firms to lower rates to get ready to compete with India. According to the minister, a discussion was under way on granting multiple entry visas valid for three years to Indian businessmen.The 120-member delegation will head to Karachi on Tuesday, and to Islamabad a day later, under unprecedented security cover.

Pakistan has two daunting tasks at hand: one is to nip all dissenting voices in local markets and make way for more goods from India, and the other is to keep the visiting Indian delegation safe.

antojoseph@mydigitalfc.com

(The correspondent is visiting Pakistan along with the trade delegation on the invitation of Ficci)