India has banned the import of all goods coming from or passing through Pakistan, as tensions between the two countries continue to grow after a deadly terror attack in Pahalgam in India's Kashmir on April 22.
The Directorate General of Foreign Trade said in a notice on May 2 that the ban will come into force immediately.
The Indian government has inserted a new Para 2.20A in Foreign Trade Policy, 2023, calling it Prohibition on Import from Pakistan.
"Direct or indirect Import or transit of all goods originating in or exported from Pakistan, whether or not freely importable or otherwise permitted, shall be prohibited with immediate effect, until further orders. This restriction is imposed in the interest of national security and public policy. Any exception to this prohibition shall require prior approval of the Government of India," DGFT said in the notification dated May 2.
The trade ban is expected to hit Pakistan's struggling export sector, which relies on cross-border trade for goods like cement, textiles, and agricultural produce. With formal trade already limited, the move could also disrupt informal trade routes and worsen economic pressures.
While Pakistan had also suspended trade ties with India, experts had said India's bilateral trade with Pakistan is miniscule and is just 0.06 per cent of India's total trade.
Trade between India and Pakistan worsened after the Pulwama terror attack in 2019. India then raised import duties to 200% on all goods from Pakistan, including fresh fruit, cement, petroleum products and mineral ore. India had also cancelled Pakistan’s 'most favoured nation' trade status.
Trade between India and Pakistan has fallen sharply in recent years. Between April 2024 and January 2025, India imported just $420,000 worth of goods from Pakistan — a steep drop from $2.86 million during the same period the year before, according to India’s commerce ministry.
India’s exports to Pakistan also declined, falling to $447.7 million from $1.1 billion over the same period.
India and Pakistan have had a weak trade relationship since 1947, with several breaks over the years. However, indirect trade through Dubai has gone on without any pause. Dubai is one of the main centres for trade between the two countries through a third party, Nisha Taneja, professor at ICRIER, wrote in an article for ET Online. Important goods sent through Dubai include gold jewellery, textiles, machinery, and appliances.
Also Read: Pakistan’s trade ban on India carries more politics than punch
Twenty six people, most of them tourists, were killed in Kashmir on April 22 in an attack by terrorists who are said to had training in Pakistan and investigation reportedly said one of the Pakistani terrorists behind the fatal attack, Hashim Musa, is a former para commando of the Pakistan Army’s Special Forces
Prime Minister Narendra Modi’s government blamed Pakistan for the attack and promised to punish those behind it. Pakistan denied any connection and warned it would respond if India took military action, while it has cotinued to violat ceasefire at LoC.
India has taken a series of steps already against Pakistan while downgrading diplomatic ties. The measures against Pakistan include suspension of the Indus Water Treaty and shut its airspace to flights from Pakistan, all of which can cripple the Pakistani economy more while putting even its crops on the line if the water taps are shut.
In response, Pakistan took several significant actions, including suspending the 1972 Simla Agreement, closing its airspace to Indian flights, shutting the Wagah border crossing, halting trade, and warning that any attempt by India to divert water under the Indus Treaty would be seen as an act of war.
Source Name : Economic Times