Pakistan now decided to terminate trade relations and slowdown trade relations with India in a drastic move. The whole activity can be seen as a result of Modi’s desire to drop all special provisions relating to Kashmir and evenly divide the state into two Union Territories.

On such a broader analysis, it appears that Pakistan’s choice to temporarily halt trading relationships will have very little impact on both nations. Exchange between each of the countries stood at just $2.4 billion in 2017-18, covering for just 0.31 percent of India’s full trade with the world and just about 3.2 percent of Pakistan’s international trade.illion in 2017-18, accounting for a mere 0.31 per cent of India’s total trade with the world and just about 3.2 per cent of Pakistan’s global trade.


Pakistan currently exports cement ($78.3 million), fertilizers ($34.9 million), fruit ($112.8 million per year), chemical products ($60.4 million) and leather. A broader view at exchange operations among India and Pakistan, however, reveals that trade flows between India and Pakistan have fallen since 2014-15.

India’s government stopped inter-LoC exchange in April 2019 on getting reports that inter-LoC trade routes were being misused by Pakistan-based elements to channel illegal weapons, narcotics, and fake currency.

Not only has India tried to suppress Pakistan after the Pulwama physical assault by courting worldwide help and assistance to publicly declare it a terror peddler, but the Modi government has also made several attempts to weaken its economy by increasing duties on essential products.

The main items that India imports are fresh fruits, cement, petroleum products, bulk minerals and ores, and finished leather. The main exports to Pakistan include raw cotton, cotton yarn, chemicals, plastics, man-made yarn and coloring.

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