On April 22, a deadly terror attack rocked Pahalgam in Jammu and Kashmir, where armed terrorists opened fire on a group of tourists. The brutal attack left 26 dead and injured many others. The victims included families on vacation, including children, prompting a wave of nationwide outrage.
India Responds With Strong Measures
In a swift and stern response, the Indian government has taken several major diplomatic actions against Pakistan. Authorities have canceled the Indus Water Treaty and scrapped SAARC visas for Pakistani citizens. Officials with SVES visas currently residing in India have been ordered to leave the country within 48 hours.
The government has also banned the official X (formerly Twitter) account of Pakistan in India, signaling a complete breakdown in diplomatic communications.
“Trade Relations Are Being Severed”
These sweeping decisions are expected to directly impact India-Pakistan trade. “The relationship between India and Pakistan is ending completely,” a senior official stated. “This will have a major effect on the market.”
Economic Impact on Indian Consumers
India imports several essential goods from Pakistan, and the disruption in trade is likely to hit consumers hard. Among the affected items:
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Dry Fruits: Pakistan is a major exporter of dry fruits to India. “Dry fruits could become significantly more expensive due to supply chain disruptions,” said a Delhi-based wholesaler.
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Rock Salt: India’s supply of rock salt almost entirely comes from Pakistan. With trade halted, prices are expected to rise steeply.
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Optical Lenses: High-demand optical lenses for spectacles, which are made in Pakistan, may also see a spike in prices.
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Other Imports: India also sources fruits, cement, Multani mitti, cotton, steel, and leather goods from Pakistan—all of which may now become costlier or harder to find.
A New Economic Equation
The economic fallout from the Pahalgam terror attack may reshape trade dynamics in South Asia. With diplomatic ties severed and trade routes disrupted, consumers in India might soon feel the impact on their wallets.
