Uncovering Indirect Routes: The Complex Dynamics of India-Pakistan Trade

The government is investigating indirect exports of Indian goods to Pakistan via third countries due to disrupted direct trade channels. Post-terror attack measures have intensified scrutiny on rerouted exports and third-party trade facilitation methods. India's exports to Pakistan are minimal, primarily focusing on pharmaceuticals and chemicals.

The Indian government is taking significant steps to probe indirect exports of goods to Pakistan using third countries. This move comes in the wake of Pakistan sealing its airspace to Indian carriers, compounding existing trade challenges.

In the latest clampdown, aimed at closing loopholes exploited by exporters, Indian officials are collecting export data from several bodies, including customs and export promotion councils. The focus is on goods originally shipped to ports such as Dubai and Singapore, later rerouted to Pakistan.

The recent upsurge in tensions, intensified by a terror attack in Pahalgam, has seen India solidify its trade defenses, crucially shutting down the Attari border crossing and imposing stringent checks on goods presumed to be indirectly traded with Pakistan.