Pahalgam Attack: CAIT Stops Trade with Pakistan
In response to the recent terror attack on tourists in Pahalgam, the Confederation of All India Traders (CAIT) has made a significant decision to halt all trade with Pakistan. This resolution was passed during CAIT’s two-day national governing council meeting in Bhubaneswar, where more than 200 trade leaders from across India gathered to discuss the situation. The council strongly condemned the attack and expressed its commitment to stand against terrorism by stopping all imports and exports with Pakistan.
Praveen Khandelwal, the Secretary General of CAIT and Member of Parliament from Chandni Chowk, shared that the traders are fully backing the government’s tough actions against terrorism, especially the stance taken by Prime Minister Narendra Modi. Khandelwal explained, “In protest of the brutal killing of innocent tourists in Pahalgam, the business community has decided to stop all trade with Pakistan immediately.” He emphasized that the business community is united in its support for Prime Minister Modi’s efforts to protect India’s sovereignty and commercial interests.
Trade Between India and Pakistan in Decline
The trade relations between India and Pakistan have been in decline since the Pulwama terrorist attack in 2019. In 2018, bilateral trade between the two countries reached nearly USD 3 billion. However, by 2024, this figure had dropped significantly to about USD 1.2 billion.
During the period between April 2024 and January 2025, India exported goods worth around USD 500 million to Pakistan, including pharmaceuticals, chemicals, sugar, and auto parts. In contrast, the imports from Pakistan were minimal, totaling just USD 0.42 million. With the CAIT’s latest decision to stop all trade, this downward trend is set to continue.
Indian merchandise worth more than $10 billion annually is reportedly reaching Pakistan through alternative trade channels, bypassing existing trade restrictions, according to trade data from the Global Trade Research Initiative (GTRI).
GTRI revealed that businesses are increasingly using intermediary ports in Dubai, Singapore, and Colombo to transport goods from India to Pakistan.
CAIT Calls for Action on E-Commerce Platforms
At the same meeting, CAIT leaders also raised concerns about the growing influence of quick commerce and e-commerce platforms. They urged the government and the GST Council to impose a 28% Goods and Services Tax (GST) on these platforms.
CAIT has accused e-commerce companies of violating laws, selling counterfeit products, and undermining the businesses of small traders. They urged the government to take immediate action by enforcing the e-commerce policy and adhering to the Consumer Protection Act and Foreign Direct Investment (FDI) rules. Transparency and accountability in digital commerce were highlighted as critical issues that need urgent attention.
This bold move by the CAIT reflects the frustration of traders across India with both terrorism and unfair business practices, as they seek to protect both national security and the livelihoods of small traders in the country.
