In response to the Pahalgam terror attack, which claimed multiple civilian lives, the Government of India invoked provisions of the Foreign Trade Policy (FTP) Act to ban all import activities originating from Pakistan. Unlike previous partial restrictions, this ban is comprehensive, covering:
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Direct bilateral trade
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Indirect trade through third-party countries like the UAE and Singapore
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Courier and port access for any commercial transit related to Pakistan
This marks one of the most stringent economic actions taken against Pakistan since the Pulwama attack in 2019 and is a clear signal of India’s intent to diplomatically and economically isolate sponsors of terror.
π§Ύ Key Measures Taken by the Indian Government
The following steps were announced as part of the new policy shift:
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π¦ All trade routes, ports, and couriers with Pakistan have been suspended.
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π Trade via third-party countries (especially UAE and Singapore) has been explicitly blocked under FTP regulations.
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π§ Indus Water Treaty is under review, indicating a potential long-term pressure tactic.
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ποΈ Diplomatic ties downgraded: Embassy staffing and exchanges have been significantly reduced.
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π£οΈ Prime Minister Narendra Modi emphasised that India will not tolerate any form of terrorism, domestic or cross-border.
These actions are designed to create diplomatic pressure while securing India’s national interest.
π Geopolitical and Economic Implications
The decision to suspend all trade with Pakistan will have both short-term and long-term implications:
Short-Term:
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Disruption in certain low-volume goods (like dry fruits, textiles) previously imported through informal routes
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Immediate symbolic message to Pakistan and the international community
Long-Term:
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Reshaping of Indiaβs South Asia trade diplomacy
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Increased strain on already-frail India-Pakistan relations
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Possible retaliation from Pakistan on KartarPur Corridor or consular access
For aspirants, itβs crucial to understand this move in the context of Indiaβs security doctrine, economic sanctions strategy, and diplomatic posturing in global forums.
π§ Points to Remember Trade with Pakistan
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π Complete ban on all direct and indirect imports from Pakistan under FTP Act.
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π« Trade through UAE, Singapore, and other third countries is blocked.
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π§ Indus Water Treaty being reviewed as a long-term pressure tool.
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π’ Diplomatic downgrade affects embassy functions and dialogue.
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π₯ Part of Indiaβs broader anti-terrorism strategy post-Pahalgam attack.
