India may restrict E-commerce exports to Pakistan
NEW DELHI : 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. India could shut its airspace for Pak carriers in retaliation to the attack, sources said.
While direct trade between India and Pakistan remains negligible, Indian goods continue to reach Pakistan through third countries such as the UAE, Sri Lanka, and Singapore. This includes high-value items like gold, gems and jewellery, electronics, and a growing volume of e-commerce products
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.
This consideration follows earlier steps taken by India, such as the curbing of Indus water flows and electronics trade, hinting at a calibrated response to Pakistan’s actions on multiple fronts.
On April 22, 2025, a terrorist attack unfolded in the Baisaran Valley near Pahalgam, Jammu and Kashmir, resulting in the deaths of at least 26 tourists and injuries to over a dozen others.
The assault was carried out by militants affiliated with The Resistance Front (TRF), a group linked to the Pakistan-based Lashkar-e-Taiba. This incident marks one of the deadliest attacks on civilians in the region in recent years and has significantly escalated tensions between India and Pakistan.
Source : CNBC -TV18