India's exports to Pakistan at 5-year high in 2024 defying bilateral tensions

India’s merchandise exports to Pakistan reached a five-year high of $1.21 billion in 2024 despite tense ties between the two neighbours.

The relations between the two countries are in the spotlight again after the April 22 terror strike in Jammu and Kashmir's Pahalgam left at least 26 people dead. The Resistance Front, a proxy of Pakistan-based Lashkar-e-Taiba, has claimed responsibility for one of the deadliest strikes against civilians in recent years.

The last time Indian exports to Pakistan were higher was in 2018 at $2.35 billion, according to UN Trade and Development (UNCTAD) and UN COMTRADE data.

Total merchandise trade between the two nations jumped 127.21 percent to $1.21 billion in 2024 from $530.91 million in 2023.

New Delhi, however, has been maintaining a massive trade surplus with Islamabad for several years.

India’s top exports to Pakistan include organic chemicals, pharmaceutical products, sugar and confectionery. Islamabad ships apparel, salt, sulphur, lime and cement to India.

After the Pulwama Attack in 2019, India raised the customs duty to 200 percent on all goods imported from Pakistan, including fresh fruits, cement, petroleum products and mineral ore along with withdrawing the neighbouring country’s Most Favoured Nation (MFN) status.

This decision hit Pakistan's exports to India, pulling them down from $547.47 million in 2019 to only $0.48 million in 2024.

Pakistan in August 2019, too, decided to suspend bilateral trade with India, after the abrogation of Article 370 that gave special status to Jammu and Kashmir.

However, Islamabad promptly withdrew the decision for select items given inflationary concerns.

India’s exports to Pakistan jumped more than 300 percent in 2024 from 2020.

It remains to be seen how the Pahalgam attack will shape the trade between the two countries.