India believes trade with Pakistan could hit $4b a year by 2006

The team of 51 businessmen crossed the Wagah land border on Friday morning.

It is being led by the president of India-Pakistan Chamber of Commerce and Industry, Senator Ilyas Ahmed Bilour.

"We are here on a business mission... we have brought love, affection and harmony for the people of India," Mr Bilour said on arrival.

The businessmen will meet Indian counterparts in Delhi on Monday and Tuesday.

On the agenda will be ways to increase trade volume between the nations.

Official figures estimate trade to be worth $230m a year. Unofficial figures put it at $1.5b.

India believes trade could reach $4b in three years given the right policies, such as Pakistan agreeing to accept most favoured nation trading status.

However, Islamabad has been reluctant to do so until agreement is reached on the disputed region of Kashmir.

'Hand of friendship'

The six-day trip has been sponsored by the Federation of Indian Chambers of Commerce and Industry, established during the famous bus trip to Lahore by Indian Prime Minister Atal Behari Vajpayee in February 1999.

Since then, relations between the nations have been on a rollercoaster.

The thaw in ties saw Pakistan's new envoy enter India this week

An attack by militants on the Indian parliament in December 2001 sent ties on a downward spiral that nearly led to war last summer.

In April this year Mr Vajpayee offered what he said was the "hand of friendship", leading to the restoration of diplomatic relations.

Mr Bilour said the trade team wanted to "improve the political atmosphere between Pakistan and India and open up avenues for development of trade and commerce".

But he warned: "Pakistan will not be at a loss in trade with India."

He also hinted that the trade issue was still linked to Kashmir: "We hail the statement by Pakistan President Pervez Musharraf that all disputes between India and Pakistan, including Kashmir, should be solved through dialogue."

The Pakistani team represents a cross-section of industry from chemicals and pesticides to cotton, rubber and sugar.