India has taken several steps to send a stern warning to Pakistan. india has boycotted all economic relations, including limited trade, between the two countries. The indian government recently announced a complete suspension of all trade relations with Pakistan. As a result, imports and exports between the two countries have come to a complete halt. The question now is, how much will stopping trade with pakistan affect India? What types of goods were traded between the two countries? If exports from pakistan are stopped, which items will be more expensive in India?
Trade slumps after Pulwama attack: Relations between india and pakistan have been tense for a long time. After the Pulwama attack in 2019, india imposed strict restrictions on trade with Pakistan. Since then, bilateral trade between the two countries has been declining steadily. According to statistics, in 2018-19, the total trade between the two countries was over Rs 4,370 crore. However, following the Pulwama terror attack in 2019, india imposed a 200 percent duty on goods imported from Pakistan. This led to a major decline in trade. In 2019-20, trade through the Attari land border fell to Rs 2,772 crore.
Pakistan will be more affected than India: pakistan is already in a severe financial crisis. We must note that inflation is at its peak there. The country's foreign exchange reserves, which are on the verge of bankruptcy, are rapidly dwindling. Due to this, pakistan is heavily dependent on loans from the international Monetary Fund. In such a situation, a complete breakdown of trade relations will affect pakistan more than India. The trade figures between the two countries clearly show this difference. In the financial year 2021-22, india exported goods worth 513.82 million USD to Pakistan. At the same time, the value of imports from pakistan was only 2.54 million USD.
In 2022-23, India's exports to pakistan increased to 627.10 million USD. At the same time, the value of imports from pakistan was 20.11 million USD. However, in 2023-24, imports from pakistan declined significantly to US$ 2.88 million. At the same time, India's exports increased to US$ 1,180 million. It is noteworthy that India's total trade with pakistan is less than 0.06 percent of India's total trade. This makes it clear that india is not heavily dependent on imports from Pakistan. At the same time, pakistan is heavily dependent on imports from India.
The main products imported from pakistan to india are: Watermelon, Melon, Cement, rock salt, dry fruits, Stones, Lime, Cotton, Steel, Optical Materials for Glasses, Organic Chemicals, Alloys, Leather Goods, Copper, Sulfur, Fabrics, Sandals, Multani Mitti.
Major exports from india to pakistan include: coconut, fruits, vegetables, tea, spices, sugar, oilseeds, animal feed, dairy products, plastic products, pharmaceuticals, salt, motor parts, dyes, and coffee.
The trade ban with pakistan may cause minor fluctuations in the prices of certain items. In particular, the prices of rock salt and some types of dry fruits are likely to increase slightly. However, experts believe that the impact on the overall indian economy will not be large. This is because trade between india and pakistan accounts for a very small share of India's total trade. At the same time, Pakistan's economy may be significantly affected by the ban. For pakistan, which is already in an economic crisis, this trade ban is expected to create further problems.
Trade slumps after Pulwama attack: Relations between india and pakistan have been tense for a long time. After the Pulwama attack in 2019, india imposed strict restrictions on trade with Pakistan. Since then, bilateral trade between the two countries has been declining steadily. According to statistics, in 2018-19, the total trade between the two countries was over Rs 4,370 crore. However, following the Pulwama terror attack in 2019, india imposed a 200 percent duty on goods imported from Pakistan. This led to a major decline in trade. In 2019-20, trade through the Attari land border fell to Rs 2,772 crore.Pakistan will be more affected than India: pakistan is already in a severe financial crisis. We must note that inflation is at its peak there. The country's foreign exchange reserves, which are on the verge of bankruptcy, are rapidly dwindling. Due to this, pakistan is heavily dependent on loans from the international Monetary Fund. In such a situation, a complete breakdown of trade relations will affect pakistan more than India. The trade figures between the two countries clearly show this difference. In the financial year 2021-22, india exported goods worth 513.82 million USD to Pakistan. At the same time, the value of imports from pakistan was only 2.54 million USD.
In 2022-23, India's exports to pakistan increased to 627.10 million USD. At the same time, the value of imports from pakistan was 20.11 million USD. However, in 2023-24, imports from pakistan declined significantly to US$ 2.88 million. At the same time, India's exports increased to US$ 1,180 million. It is noteworthy that India's total trade with pakistan is less than 0.06 percent of India's total trade. This makes it clear that india is not heavily dependent on imports from Pakistan. At the same time, pakistan is heavily dependent on imports from India.
The main products imported from pakistan to india are: Watermelon, Melon, Cement, rock salt, dry fruits, Stones, Lime, Cotton, Steel, Optical Materials for Glasses, Organic Chemicals, Alloys, Leather Goods, Copper, Sulfur, Fabrics, Sandals, Multani Mitti.
Major exports from india to pakistan include: coconut, fruits, vegetables, tea, spices, sugar, oilseeds, animal feed, dairy products, plastic products, pharmaceuticals, salt, motor parts, dyes, and coffee.
The trade ban with pakistan may cause minor fluctuations in the prices of certain items. In particular, the prices of rock salt and some types of dry fruits are likely to increase slightly. However, experts believe that the impact on the overall indian economy will not be large. This is because trade between india and pakistan accounts for a very small share of India's total trade. At the same time, Pakistan's economy may be significantly affected by the ban. For pakistan, which is already in an economic crisis, this trade ban is expected to create further problems.
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