Crackdown against Pakistan goods: India is keeping a hawk’s eye and conducting thorough inspections of imports from the UAE, Iran and other Gulf nations, along with specific transshipment hubs to prevent indirect entry of Pakistani goods into the country through these channels.Following the April 22 terrorist incident in Pahalgam that resulted in 26 killings, India enacted a complete ban on Pakistan goods, including those entering via third nations. Pakistan has also ceased all trade relations with India.Officials have intensified verification of import labels and origin criteria for products from these nations. This follows India’s previous concerns raised with the UAE regarding Pakistani dates being channelled into the country, which violated the India-UAE Comprehensive Economic Partnership Agreement.
Trade (Re)routes
An official told ET that imports via transshipment centres like the UAE and certain countries are under close watch for Pakistani products. The rules of origin serve as the standard for establishing a product’s national source and corresponding duty benefits.India’s merchandise exports to the UAE reached $36.63 billion in FY25, whilst imports totalled $63.42 billion. During April-February of FY25, India’s date imports amounted to $270.4 million, with the UAE contributing $123.82 million of this total. The overall imports of fresh and dried dates in FY24 were valued at $277.25 million.Also Read | Backlash for support to Pakistan: Indians cancel trips to Turkey, Azerbaijan; travel portals report big dipBetween July 2024 and February 2025, Pakistan’s exports to the UAE witnessed a 28% growth, reaching $1.2 billion compared to the previous year’s figures.On May 2, the Indian government imposed a comprehensive ban on importing or transporting goods, whether directly or indirectly, that originate from or are exported through Pakistan.“This restriction is imposed in the interest of national security and public policy,” the commerce and industry ministry had said in a notification. “Any exception to this prohibition shall require prior approval of the government of India.”A government official noted that whilst examining imports from a single country is straightforward, the process becomes intricate when value addition is involved, necessitating more thorough verification procedures. “Also, goods under transit are under scrutiny. India didn’t clarify in the notification that goods in transit will be exempt from scrutiny,” the official said.Also Read | India-Pakistan ceasefire: How India’s punitive measures will continue to hit Pakistan’s fragile economy – explainedDuring April-February of FY25, India’s imports from Pakistan totalled $2.88 million, primarily consisting of plants and seeds, dates, figs and malt extracts.The trade relationship had already experienced a decline after India implemented a 200% tariff on Pakistani products in 2019, following the Pulwama terrorist attack.Despite India extending most favoured nation status to Pakistan in 1996, Pakistan had not offered similar treatment in return.
