Have Indian Merchants Cut Trade Ties with Pakistan Over Pahalgam Terror Attack?

New Delhi, April 27 (NationPress) Indian traders have made a decisive move to sever all trading connections with Pakistan in response to the terrorist attack in Kashmir’s Pahalgam, allegedly backed by Islamabad, as announced by the Confederation of All India Traders (CAIT) on Sunday.

This decision was made during a meeting of trade leaders from 26 states at CAIT’s National Governing Council held in Bhubaneswar.

According to CAIT Secretary General and Chandni Chowk MP Praveen Khandelwal, a unanimous resolution was adopted, strongly condemning the terrorist act in Pahalgam and calling for “a total boycott of all trade activities with Pakistan.”

The resolution emphasized that, in reaction to the horrific murder of innocent tourists in Pahalgam, the business sector has resolved “to immediately halt all forms of imports and exports with Pakistan.”

Traders expressed their complete support for Prime Minister Narendra Modi’s robust actions against terrorism and insisted that the culprits and their accomplices receive the harshest penalties possible.

Following the Pulwama terrorist attack in 2019, trade relations between India and Pakistan significantly worsened, resulting in a dramatic decline in bilateral trade. The trade volume plummeted from nearly $3 billion in 2018 to about $1.2 billion in 2024.

Between April 2024 and January 2025, India exported approximately $500 million worth of goods to Pakistan, primarily pharmaceuticals, chemicals, sugar, and auto parts, while imports were merely $0.42 million. Traders have now committed to completely ending this trade as well, according to a CAIT statement.

“Trade leaders highlighted that while suspending trade with Pakistan may have a short-term effect on some exporters, persisting trade with a hostile nation post-Pahalgam attack is utterly unacceptable,” the statement declared.

They asserted that the Indian trading community is ready to endure any economic loss necessary to maintain the unity, integrity, and security of the nation.

In a separate resolution during the meeting, CAIT accused E-Commerce and Quick Commerce companies of persistently breaching regulations, marketing counterfeit products, and conspiring to undermine small traders’ businesses.

CAIT demanded that the government promptly enforce the E-Commerce policy and the rules established under the Consumer Protection Act and the Foreign Direct Investment (FDI) policy.

The resolution also called for a 28 percent GST on Quick Commerce and E-Commerce deliveries, asserting that such conveniences should be regarded as luxuries and taxed accordingly.

The trade leaders urged a comprehensive review and simplification of the GST framework. Traders called for an extensive assessment of GST to broaden the tax base and to revisit and rationalize the different tax brackets, making the system more straightforward and conducive to business, the statement concluded.