Against the backdrop of the Pahalgam terror attack, reports have emerged that India is planning to restrict the export of e-commerce goods and electronics to Pakistan. Sources also said that India could shut its airspace for Pak carriers in retaliation to the attack.
With Pakistan already closing down its airspace for Indian passenger traffic and potentially shutting the air cargo route as well, CNBC-TV18 reported sources as saying that India is also looking at alternative air cargo routes and studying the monetary impact of such restriction on Indian exports.
India and Pakistan barely conduct any direct trade, but Indian e-commerce products, electronics, precious gems, jewellery and gold reach Pakistani markets via countries like Sri Lanka, the United Arab Emirates (UAE) and Singapore.
Due to the ban on direct trade, data from Global Trade Research Initiative (GTRI) shows that Pakistan receives Indian goods worth over $ 10 billion, but from intermediary countries.
The likely restriction on export of e-commerce and electronic goods comes after India put the Indus Water Treaty (IWT) on hold, banned pharmaceutical exports, halted bilateral trade, shut the Attari-Wagah Border and asked Pak nationals in India to leave.
Terrorist attack in Baisaran Valley near Pahalgam on April 22 resulted in the deaths on at least 26 people and injuries to several others.
Pak terrorist organisation Lashkar-e-Taiba’s offshoot The Resistance Front (TRF) was behind one of the deadliest terror attack on the Indian soil.
