Tension between India and Pakistan has grown again after a terrorist attack in Pahalgam, Jammu and Kashmir. In response, India took strict steps, including tightening the Indus Water Treaty, stopping visa issuance to Pakistani nationals, and shutting the Attari-Wagah border. Reacting to this, Pakistan also closed its airspace for Indian flights and suspended trade activities. As a result, the limited trade between the two neighbours has slowed further.
Let’s look at the current trade situation and what both countries import and export.
India Sends Goods Worth Thousands of Crores to Pakistan
Trade between India and Pakistan is not balanced. India has always exported more to Pakistan than it imports. Even after past tensions, Indian exports to Pakistan rose by 300% in 2024 compared to 2020. However, the actual trade numbers are still small compared to India’s global trade.
In 2024, the two countries traded goods worth over $1.21 billion, or more than ₹10,000 crores. This was the highest trade volume in the last five years. But it is still much lower than the record high of $2.35 billion seen in 2018 before the Pulwama attack.
Heavy Tariffs on Imports from Pakistan Still Continue
After the Pulwama attack in 2019, India took several economic steps. One major move was placing a 200% tariff on Pakistani imports. India also removed the Most Favoured Nation (MFN) status that had earlier allowed easier trade for Pakistan.
Due to these actions, Pakistan’s exports to India dropped sharply. For example, in 2024, Pakistan exported goods worth just $48 million, down from $54.7 million.
What India Exports to Pakistan
India mainly exports the following items to Pakistan:
- Organic chemicals
- Medicines and pharmaceutical products
- Sugar and confectionery
- Cotton and textile materials
These goods are in regular demand, even in difficult times. India’s manufacturing power and better pricing make it a strong supplier for these items.
What Pakistan Exports to India
Though limited, Pakistan sends a few goods to India, such as:
- Salt and sulphur
- Lime and cement
- Garments and textiles
But these exports are hit hard due to the high import duties and reduced demand in India.
Pakistan Once Stopped All Trade—But Then Reversed It
In 2019, when Article 370 was removed from Jammu and Kashmir, Pakistan completely suspended all trade ties with India. But due to rising prices and shortages, it later allowed limited imports, especially of food and medical supplies. Still, formal trade relations were never fully restored.
