Modi government might pause exports of e-commerce goods to Pakistan
What's the story
The Indian government is considering curbs on the export of electronics and e-commerce goods to Pakistan, as per CNBC-TV18. The possible move comes as tensions between the two nations continue to rise and they reassess their bilateral trade and logistics strategically. The Centre is also bracing for a possible suspension of the air cargo route by Pakistan, with officials assessing its impact on Indian exporters.
Trade dynamics
Trade routes and intermediary nations
Despite little direct trade between India and Pakistan, Indian products still make their way to Pakistan via third-party nations like UAE, Sri Lanka, and Singapore. These include high-value products such as gold, gems, jewelry, electronics, and an increasing volume of e-commerce products. Over $10 billion worth of Indian-origin goods are re-exported to Pakistan every year through these intermediary countries, according to Global Trade Research Initiative (GTRI) data.
Response
India takes calibrated steps in response to Pakistan
Last week, India had restricted Indus water flows, showing a calibrated response to Pakistan's actions on various fronts. The possible restriction on e-commerce exports is viewed as part of these calibrated steps. This comes after a terrorist attack in Baisaran Valley near Pahalgam, Jammu and Kashmir, on April 22 which killed 26 tourists and injured over a dozen others.