Imports from Pakistan declined by 92% to $2.84 million in March this year following imposition of 200% customs duty on all products after Pulwama terror attack.
On February 16 this year, taking strong economic action against Pakistan following the attack, India raised the customs duty to 200% on all goods imported from the neighbouring country, including cotton, fresh fruits, cement, petroleum products and mineral ore.
According to the data of the Commerce Ministry, the imports from the neighbouring country stood at $34.61 million in March 2018.
Out of $2.84 million imports in March, as much as $1.19 million was accounted for cotton import by India.
According to experts, certain domestic manufacturing exporters could be availing nil import duty benefit under advance authorisation scheme to import products, especially raw materials from Pakistan, as it would not be viable for anyone to import goods at 200% customs duty.
The main commodities imported during the month from the neighbouring country included plastics, knitted fabrics, preparation of vegetables, articles of apparel and clothing, spices, chemicals, man-made filaments, and wool.
During January-March period of 2018-19 fiscal, the imports from Pakistan declined by 47% to $53.65 million. India’s exports to Pakistan too have dipped by about 32% to $171.34 million in March.
However, the exports grew by 7.4% to $2 billion during 2018-19.
The main products being exported by India include organic chemicals, cotton, nuclear reactors, boilers, plastic products, tanning or dyeing extracts, cereals, sugar, coffee, tea, articles of iron and steel, copper and footwear.
India had also revoked the MFN (most-favoured nation) status to Pakistan in the aftermath of the terror attack. The country has repealed a security exception clause of the World Trade Organisation (WTO) to withdraw this status. Both the countries are members of this body.
India can also restrict trade of certain goods and impose port-related restrictions on Pakistani goods.
India had granted the MFN status to Pakistan way back in 1996, but the neighbouring country had not reciprocated.
Declining trade