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India Strikes Back with Trade Ban on Pakistan

by On The Dot
May 17, 2025
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India Revokes Bangladesh Transshipment Access

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New Delhi: In the wake of the deadly terrorist attack in Pahalgam, Jammu and Kashmir, which claimed the lives of 26 civilians, the Indian government has imposed an immediate and complete ban on the import and transshipment of goods originating from Pakistan — either directly or routed through third countries. This decisive step is part of India’s broader economic and diplomatic retaliation against Pakistan in response to the attack.

Crackdown on Goods Routed Through Third Countries

To counter potential evasive tactics by Pakistan, India’s Directorate of Revenue Intelligence (DRI), under the Ministry of Finance, has begun seizing and scrutinizing consignments that are being shipped from Pakistan through nations like the United Arab Emirates (UAE). Authorities are inspecting labels, packaging, and documentation in detail to determine the true origin of the goods. Suspect consignments are being detained at ports.

A senior official said, “Wherever there’s suspicion, customs authorities are taking action. Recently, a ship flying the Pakistani flag was denied docking permission in India. While some traders have complained of losses, these strict steps are necessary for national security and adherence to regulations.”

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India Raises Issue with UAE

It is suspected that Pakistani dates and dry fruits are entering India through the UAE. Indian authorities have raised this concern with the Emirati government. The UAE claims it produces such goods domestically, but Indian officials continue to verify each shipment closely.

Attari ICP Closed Before the Ban

Even before the May 2 government notification, India had closed the Integrated Check Post (ICP) at Attari on April 24, effectively halting all direct trade with Pakistan. The subsequent notification formally banned all imports and transit of goods originating from Pakistan.

Trade Statistics Reflect Decline

  • After the Pulwama attack, bilateral trade between India and Pakistan dropped from ₹4,370 crore in 2018–19 to ₹2,257 crore in 2022–23.

  • In 2023–24, trade rebounded slightly to ₹3,886 crore, but the latest restrictions are likely to cause another sharp decline.

  • In FY 2023–24, India’s exports to Pakistan were valued at $447.6 million, while imports stood at just $0.42 million.

India exports primarily industrial chemicals, pharmaceuticals, textiles, and machinery to Pakistan. Imports from Pakistan are limited to niche products like dry fruits, seeds, herbs, and pink Himalayan salt.

What Next?

The message from the Indian government is clear — any form of trade linked to Pakistan, whether direct or indirect, will not be tolerated. Officials believe this hardline policy is essential not only for safeguarding national security but also for sending a strong message internationally: India will not allow terrorism and trade to coexist.

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