Cross-LoC Trade: Challenges, Opportunities, and Future Prospects

Abstract

Cross-LoC trade was initiated in 2008 after confidence building measures (CBMs) between India and Pakistan across the divided parts of the state of Jammu and Kashmir. This initiative always demanded by Kashmiris from  both sides of the Line of Control since 1947. From 640 km long line of control between rivals, only two points were selected for trade: Chakothi and Tetrinote. So, by nature, this trade was on a barter system, taken from only two points and dealing with twenty-one items only was a unique phenomenon. This trade, despite being barter-based and limited in scope, offered significant economic opportunities and facilitated people-to-people contact. However, operational challenges, bureaucratic constraints, and political tensions hindered its full potential. The suspension of trade in 2019 following the abrogation of Articles 370 and 35A by India further complicated its future prospects. This paper examines the historical context, challenges, economic impact, and future potential of cross-LoC trade, emphasizing its role in peacebuilding and regional economic integration.