Explainer: How suspension of trade ties with Pakistan will impact India

Описание: Trade between India and Pakistan has come to a complete halt following the closure of the Attari Integrated Check Post by India in the wake of the Pahalgam terror attack. In response, Pakistan has also suspended all trade ties with India – including the transit of goods from Afghanistan that came through Pakistani territory.

However, experts say this move will have little to no impact on India. Between April 2024 and January this year, trade between India and Pakistan stood at less than 500 million US dollars. During the same period, India’s overall global trade was approximately 800 billion US dollars.

Organic chemicals and pharmaceutical products accounted for nearly 60 per cent of India’s total exports to Pakistan. Pakistan has also halted India’s trade with Afghanistan via the Attari-Wagah border.

In 2024-25, India exported goods worth approximately 264 million dollars to Afghanistan and imported goods worth around 592 million dollars. While India sends most of its exports to Afghanistan via the sea route, goods from Afghanistan reach India by land through Pakistan.

Afghanistan's exports to India are also expected to take a hit due to the restrictions imposed by Pakistan on third-party trade. Afghanistan may now have to shift to sea-based routes for its exports to India – a move likely to increase their price for Indian importers.
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Video and Text credit: PTI
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