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India Cuts Trade Ties with Pakistan Over Pahalgam Terror Attacks

India Cuts Trade Ties with Pakistan Over Pahalgam Terror Attacks

In retaliation for the April 22, 2025, Pahalgam terror attack that claimed the lives of 26 civilians, India Cuts Trade Ties by banning any imports from Pakistan. The move is also part of a long-term strategy to enhance financial inflows to Pakistan and enhance national security regulations.


India Cuts Trade Ties with Pakistan

On 2nd May 2025, the Directorate General of Foreign Trade (DGFT) issued a notification of amendment in the Foreign Trade Policy (FTP) 2023 as follows:

“Direct or indirect import or transit of all articles of Pakistani origin, whether freely importable or not, or otherwise permitted to be imported or transited, shall be banned with immediate effect, until further orders.”


The government explained that this prohibition was imposed in the greater interest of national security and public policy. Exceptions to this ban would require explicit approval of the Government of India.

Additional Steps Against Pakistan
India has adopted several retaliatory steps aside from trade restrictions, including:

Suspension of the Indus Waters Treaty

Closing of the Attari-Wagah land border crossing

Downgrading diplomatic relations

Cancellation of special visas issued to Pakistani citizens

Closing Indian airspace to Pakistani airlines

Apart from that, India has prohibited ships flying the Pakistani flag from being berthed at Indian ports. And Indian vessels from entering Pakistani ports.

Declaration of Prime Minister Narendra Modi

Following a top-level meeting with senior defense leaders on April 23, Prime Minister Narendra Modi reaffirmed India’s anti-terrorism policy, declaring:

“The armed forces have complete operational freedom to determine the timing, targets, and methods of retaliation.”

Officials stated that ending terrorism is today a matter of national will, and India shall do all it takes to secure its sovereignty.

Economic Impact of the Trade Ban
Exports by India to Pakistan between April 2024 and January 2025 stood at $447.65 million, while imports totaled a mere $0.42 million. The trade ban will further shrink Pakistan’s economy, which is already struggling economically.

Conclusion: A Firm Stand Against Terrorism
India’s move to cut off trade ties with Pakistan is a robust diplomatic and economic move in response to the Pahalgam terror attack. With beefed-up security measures and a firm approach against cross-border terrorism, India continues to reiterate its commitment towards national security.

ALSO READ: Pakistan Reacts To India’s Reaction After Pahalgam Attack

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