10 Items Likely to Get More Expensive After India Bans Trade with Pakistan
Riya Kumari | May 09, 2025, 23:30 IST
( Image credit : Times Life Bureau )
The India-Pakistan trade ban is a political and security-driven decision, and in economic terms, its national impact will be modest. However, for specific consumer segments — such as boutique fashion, specialty foods, and traditional wellness — prices may temporarily rise. Over time, market forces are likely to restore balance, either through domestic innovation or sourcing from alternative trade partners.
Following the Pahalgam terror attack, the Indian government has taken a hard stance by suspending all imports from Pakistan, including those routed indirectly through third countries. The Directorate General of Foreign Trade (DGFT) issued a notification on May 2, 2025, prohibiting the import or transit of all goods originating from Pakistan in the interest of national security. While total trade between the two countries is minimal — less than 0.06% of India’s overall trade — some imported goods from Pakistan filled niche markets, especially in certain retail, fashion, and raw material segments.
1. Specialty Salts
Includes: Himalayan Pink Salt (Sendha Namak)
Pakistan’s Khewra Salt Mine is the world’s second-largest, and its pink salt is widely used in Ayurvedic diets and religious fasting. With imports halted, prices may surge until reliable Indian or global alternatives are scaled up.
2. Dry Fruits & Nuts
Includes: Almonds, Walnuts, Raisins, Figs
Dry fruits from regions like Balochistan and Peshawar are popular in Indian winter markets and festivals. While India also imports from Afghanistan, Iran, and the US, prices of these specific varieties may rise due to scarcity.
3. Ethnic Footwear
Includes: Peshawari Chappals
Popular among urban boutique buyers, Peshawari chappals represent a blend of cultural nostalgia and fashion appeal. With the trade ban, local replicas or other imported alternatives may fill the void but at a higher price.
4. Traditional Apparel
Includes: Lahori Kurtas, Pakistani Salwar Suits
Pakistani designs have carved out a niche in India's ethnic wear market. These high-demand festive garments will become hard to source, especially for boutiques in Delhi, Mumbai, and Hyderabad that stock direct imports.
5. Construction Raw Materials
Includes: Cement, Lime, Stones
Cement and stone from Pakistan were low-cost additions for border regions and certain construction hubs. Disruptions here might slightly affect price-sensitive segments of the construction industry, particularly near the Punjab border.
6. Industrial Inputs
Includes: Copper, Sulfur, Steel, Raw Hides
These materials were imported in small quantities but used across manufacturing, leather, and chemical industries. While alternate sources exist, certain price-sensitive manufacturers could face cost escalations in the short term.
7. Herbs and Natural Products
Includes: Basil, Rosemary, Multani Mitti (Fuller’s Earth)
Some specific herbs and organic natural products from Pakistan, though limited in volume, catered to India's wellness and cosmetic sectors. Multani mitti, in particular, might see a bump in price until Indian supplies scale up.
8. Optical and Lab Instruments
Includes: Optical items for glasses, lab lenses
Some Pakistani-made optical lenses and equipment were used by smaller vendors and medical labs. They may now have to switch to more expensive imports or domestic alternatives, raising prices for end users.
9. Leather Goods
Includes: Wallets, Belts, Small Leather Accessories
Pakistan’s leather industry occasionally supplied boutique-grade accessories to Indian markets. While volumes were low, the aesthetic appeal and pricing gave them a niche demand, especially in online retail and exhibitions.
10. Fabrics and Textiles
Includes: Cotton, Fashion Fabrics
Pakistani cotton and embroidered fabrics — known for their unique craftsmanship — were often imported for wedding and festive attire. With imports banned, similar fabrics from other regions may be costlier and less available.
1. Specialty Salts
Pakistan’s Khewra Salt Mine is the world’s second-largest, and its pink salt is widely used in Ayurvedic diets and religious fasting. With imports halted, prices may surge until reliable Indian or global alternatives are scaled up.
2. Dry Fruits & Nuts
Dry fruits from regions like Balochistan and Peshawar are popular in Indian winter markets and festivals. While India also imports from Afghanistan, Iran, and the US, prices of these specific varieties may rise due to scarcity.
3. Ethnic Footwear
Popular among urban boutique buyers, Peshawari chappals represent a blend of cultural nostalgia and fashion appeal. With the trade ban, local replicas or other imported alternatives may fill the void but at a higher price.
4. Traditional Apparel
Pakistani designs have carved out a niche in India's ethnic wear market. These high-demand festive garments will become hard to source, especially for boutiques in Delhi, Mumbai, and Hyderabad that stock direct imports.
5. Construction Raw Materials
Cement and stone from Pakistan were low-cost additions for border regions and certain construction hubs. Disruptions here might slightly affect price-sensitive segments of the construction industry, particularly near the Punjab border.
6. Industrial Inputs
These materials were imported in small quantities but used across manufacturing, leather, and chemical industries. While alternate sources exist, certain price-sensitive manufacturers could face cost escalations in the short term.
7. Herbs and Natural Products
Some specific herbs and organic natural products from Pakistan, though limited in volume, catered to India's wellness and cosmetic sectors. Multani mitti, in particular, might see a bump in price until Indian supplies scale up.
8. Optical and Lab Instruments
Some Pakistani-made optical lenses and equipment were used by smaller vendors and medical labs. They may now have to switch to more expensive imports or domestic alternatives, raising prices for end users.
9. Leather Goods
Pakistan’s leather industry occasionally supplied boutique-grade accessories to Indian markets. While volumes were low, the aesthetic appeal and pricing gave them a niche demand, especially in online retail and exhibitions.
10. Fabrics and Textiles
Pakistani cotton and embroidered fabrics — known for their unique craftsmanship — were often imported for wedding and festive attire. With imports banned, similar fabrics from other regions may be costlier and less available.