Business

India's Trade Ban on Pakistan: A Deep Dive into the Zero Import Scenario and Its Global Implications

India's Imports from Pakistan to Hit Zero Following Comprehensive Ban

India's imports from Pakistan are poised to plummet to zero after the central government's recent imposition of a complete trade ban. Ajay Srivastava, Founder of the Global Trade Research Initiative (GTRI), highlighted that the already minimal imports, which stood at a mere $0.5 million annually, will now cease entirely. The only notable exception might be Himalayan pink salt, a product deeply embedded in India's culinary culture.

India’s imports from Pakistan set to log zero from $0.5 million after complete ban: GTRI

Historical Context and Economic Impact

The ban is not an isolated move but follows a series of trade restrictions, including a 200% tariff on Pakistani goods post the Pulwama attack in 2019. Trade between the two nations had already dwindled to $0.42 million from April 2024 to January 2025, limited to niche products such as figs, basil, and rosemary herbs.

Srivastava notes, "India's economy remains largely unaffected due to minimal dependency on Pakistani goods. Conversely, Pakistan continues to rely on Indian products, possibly sourcing them through third countries via both recorded and unrecorded channels."

Trade Dynamics and Future Prospects

Official data reveals a stark contrast in trade items, with India importing copper, edible fruits, and nuts from Pakistan, while exporting a diverse range of goods including cotton, pharmaceuticals, and spices. Despite the direct trade freeze, GTRI estimates over $10 billion worth of Indian goods reach Pakistan through third-country trade routes, utilizing ports in Dubai, Singapore, and Colombo.

Broader Measures and Diplomatic Strains

The recent import ban is part of a broader strategy by the Indian government, which includes closing the Integrated Check Post at Attari, suspending the SAARC Visa Exemption Scheme for Pakistani nationals, and reducing diplomatic staff. Additionally, India has announced the suspension of the Indus Waters Treaty, marking a significant shift in bilateral relations.