The Union Budget’s recent announcement to extend the Amritsar-Kolkata Industrial Corridor (AKIC) to Gaya has set the stage for a new wave of economic ambition. This extension, while promising for domestic connectivity, has also ignited calls for a further extension up to Attari, aiming to bolster international trade and connectivity. The proposed extension to Attari could transform the corridor into a global trade route, linking it with Central Asia and beyond.
The AKIC already spans the Indo-Gangetic plain, a region known for its fertile lands and agricultural productivity. The inclusion of Attari in the corridor’s expansion plan could leverage this geographic advantage to tap into larger markets. Attari’s strategic location, equipped with a state-of-the-art Integrated Check Post (ICP) and an international railway station, makes it an ideal gateway for trade with Pakistan, Afghanistan, and further into Central Asia.
Economic experts and industry leaders have highlighted the benefits of transforming the domestic project into an international one. Attari’s connectivity would enable trade routes extending through Afghanistan to Iran, and further north to Turkmenistan, Uzbekistan, and Tajikistan. This expanded network opens significant opportunities for the export of agricultural produce and manufactured goods from the Indo-Gangetic plains and Punjab, in particular.
Historically, the region has been a strong player in the export of perishables. For instance, exports of vegetables like baby corn, snow peas, and okra from Punjab, Himachal Pradesh, and Jammu and Kashmir were initially routed through Amritsar’s Sri Guru Ram Das Jee International Airport. The volume of fresh vegetable exports soared from 100 tonnes in 2006-07 to 908 tonnes within three years, before a private airline’s withdrawal of its direct Amritsar-London flight in 2010 led to a decline. Currently, only basmati rice is shipped through sea ports to international markets.
Professor Ranjit Singh Ghuman from Guru Nanak Dev University underscores the strategic importance of Punjab in India’s national security and economic landscape. He advocates for the extension of the corridor to Attari, emphasizing that it would rejuvenate trade opportunities with Pakistan and enhance regional benefits. He also calls for a significant boost in agro-based industries and dairy farming to capitalize on export potential. Despite the vast agricultural production, only a small fraction is processed domestically.
Before its suspension in 2019, trade through the Attari ICP between India and Pakistan was valued at approximately Rs 5,000 crore annually. This trade flow ceased when Pakistan halted ties in response to India’s abrogation of Article 370 in Jammu and Kashmir. Prior to this, Attari handled 25 percent of India-Pakistan trade, a testament to its vital role in bilateral commerce.
In light of these developments, the MSME sector in Punjab, which comprises over a million units and employs more than 5.6 million people, stands at the forefront of leveraging the corridor’s expansion. DPS Kharbanda, CEO of the Punjab Bureau of Investment Promotions, emphasizes the sector’s robustness and its capacity to meet global demand with cutting-edge technologies. Strengthening this sector will be crucial in ensuring that Punjab maximizes the benefits of the corridor.
The proposed extension of the AKIC to Attari represents not just a domestic infrastructure improvement but a strategic move towards integrating Indian trade more deeply into the global economy. By linking this corridor with international routes, India could unlock new economic opportunities and enhance its position in global markets.
The opinions expressed in this article are those of the author. They do not purport to reflect the opinions or views of Khalsa Vox or its members.
