List Of Items Likely To Get More Expensive After India Bans Pakistan Trade

India-Pakistan Trade Ban:  India has imposed a ban on all imports from Pakistan, following the Pahalgam terror attack. The Directorate General of Foreign Trade (DGFT) has issued a notification on May 2 announcing a new provision in the Foreign Trade Policy (FTP) 2023. As per the pib.gov.in, the provision states, "Direct or indirect import or transit of all goods originating in or exported from Pakistan, whether or not freely importable or otherwise permitted, shall be prohibited with immediate effect, until further orders. This restriction is imposed in the interest of national security and public policy."

The ban includes all imports from Pakistan, including indirect routes like intermediary nations, postal services, and even vessels. This action is taken due to national security concerns and aims to prevent Pakistani goods from entering India that might put India in trouble. Although the overall economic effect for Indian consumers is likely to be negligible, given the already small volume of imports, however, some niche products are likely to experience price hikes or short-term shortages. Here’s a list of items that are likely to get more expensive after India banned trade from Pakistan. 

List Of Important Pakistani Items Likely To Be Impacted By The Ban:

1. Himalayan Pink Salt (Sendha Namak)

Himalayan Pink Salt is harvested from Pakistan's Khewra salt range. This salt is used during religious fasts and in Ayurvedic rituals. With imports halted, prices could increase until the new alternative or domestic alternatives are found.

2. Dry Fruits (Almonds, Walnuts, Figs, Raisins)

Balochistan and Peshawar-origin dry fruits are most bought during festivals and winters. Their unavailability could result in a hike in the prices of this variety of dry fruits. However, Indian and other international alternatives are available.

3. Peshawari Chappals And Lahori Kurtas

The Peshawari Chappals (Slippers) and Lahori Kurtas (clothing) are usually sold as speciality imports and will vanish from Indian boutiques after the trade ban, possibly making similar local or imported products more expensive.

4. Garments And Salwar Suits

Pakistani clothes like Pakistani salwar suits might now become hard to get, which will impact boutique shops and consumers who look forward to these particular designs.

5. Herbs (Basil, Rosemary)

Limited quantities of speciality herbs shipped from Pakistan could also experience a price rise, though overall market influence is minimal.

6. Copper And Raw Hides

These raw materials of industry, although imported in small quantities, can experience price changes for some manufacturers.

List Of Items Imported from Pakistan To India:

Watermelon, Muskmelon, Cement, rock salt, dry fruits, stones, lime, cotton, steel, optical items for glasses, organic chemicals, metal compounds, leather goods, copper, sulfur, fabrics, slippers, Multani mitti (Fuller's earth).

List Of Items Exports From India To Pakistan:

Coconuts, fruits, vegetables, tea, spices, sugar, oilseeds, animal feed, dairy products, plastic products, pharmaceuticals, salt, motor parts, dyes, and coffee.

Why the Impact Of Pakistan Trade Ban Is Limited In India?

Minimal Dependency:  Indian imports from Pakistan had already reduced to approximately $0.5 million a year because of earlier high tariffs and trade restrictions.

Alternative Sources:  The majority of impacted products have alternative sources from domestic or other global markets, which will stabilise prices in the long run.

Symbolic Move:  Experts observe that the ban is symbolic and political, with minimal actual effect on Indian consumers, apart from niche products like Himalayan pink salt.

The immediate impact of the ban on trade will be on the prices and availability of speciality products like Himalayan pink salt, choice dry fruits, and Pakistani fashion items. For the average Indian consumer, however, the effect will be limited in the short term as the market readjusts to new sources.