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

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

Jessica BrownBy Jessica Brown Business
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The trade between India and Pakistan has stopped complete after the closing of the Integrated Control Post of Attari by India following the terrorist attack of Pahalgam. In response, Pakistan has also suspended all commercial ties with India, including the traffic of assets of Afghanistan that arrived through the Pakistani territory.

However, experts say this movement will have little or no impact on India. Between April 2024 and January of this year, trade between India and Pakistan was less than 500 million US dollars. Duration The same period, the general global trade of India was approximately 800 billion US dollars.

Organic chemicals and pharmaceutical products represented almost 60 percent of total exports from India to Pakistan. Pakistan has also arrested India’s trade with Afghanistan through the Attari-Wagah border.

In 2024-25, India exported an approximate value of 264 million dollars to Afghanistan and imported goods worth around 592 million dollars. While India sends most of its exports to Afghanistan through the Route of the Sea, Afghanistan’s assets reach India through Pakistan.

It is also expected that Afghanistan exports to India will receive a blow due to the restrictions imposed by Pakistan in third -party trade. Afghanistan can now have to change to sea -based routes for its exports to India, a movement that probably increases its price for Indian imports.

Posted on April 26, 2025

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