India closes Attari border: How trade will be affected with Pakistan

Tensions between India and Pakistan have ratcheted up in the wake of the Pahalgam terror attack. New Delhi has taken steps to retaliate against Islamabad, which it blames for the massacre in Jammu and Kashmir’s scenic Baisaran meadow that killed 26 people, mostly tourists.

India has downgraded ties with Pakistan, suspended the Indus Water Treaty and cancelled the SAARC Visa Exemption Scheme (SVES) privileges for Pakistani nationals. In another big step, New Delhi decided to shut the Integrated Check Post (ICP) at Attari, a village in Punjab’s Amritsar.

The decision is expected to have a major impact on trade between India and Pakistan, given Attari is the primary land trade route between the neighbouring countries.

Let’s take a closer look.

India closes Attari border

India has announced the closure of a key land border with Pakistan. Foreign Secretary Vikram Misri announced on Wednesday (April 23) that the Integrated Check Post at Attari will be shut with “immediate effect.”

The decision was taken at a meeting of the Cabinet Committee on Security, chaired by Prime Minister Narendra Modi, yesterday to draw up India’s response to the Pahalgam terror attack.

The Attari border will be temporarily open to allow people who came to India from Pakistan to return. “Those who have crossed over with valid endorsements may return through that route before 1st May 2025,” Misri said.

What is Attari-Wagah border?

Attari and Wagah refer to the international border between India and Pakistan. Attari is an Indian village in Punjab, and Wagah is a village in Pakistan.

The border is the sole land trade route between the two nations and India’s first land port in Attari.

The land border is known for the Beating Retreat ceremony, which attracts thousands of visitors daily.

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As per a Hindustan Times (HT) report, the ceremony could be suspended on Thursday (April 24). However, Border Security Force (BSF) officials told the newspaper they are yet to get any communication from the Delhi headquarters.

“We are also waiting for the order. This decision will be taken at the level of the government and then communicated to the BSF. We have been told that an order will be issued shortly,” an unnamed official told the newspaper.

Trade impact of Attari border closure

Located about 28 kilometres from Amritsar, the land port in Attari plays a big role in the import and export of goods between India and Pakistan.

Spanning an area of 120 acres, the land port is connected to National Highway-1.

It is the only authorised land corridor for trade and movement of passengers between the two countries. Goods from Afghanistan also reach India through the Attari Land Port.

As per The Express Tribune report, the land port recorded trade worth Rs 3,886.53 crore with 6,871 cargo movements in the financial year 2023–24. As many as 71,563 passenger crossings were also reported.

India’s main exports through the Attari land port are vegetables, soybeans, poultry feed, plastic granules and red chillies. Imports from Pakistan include dry fruits, rock salt, gypsum, cement, and medicinal herbs.

However, the bilateral trade between the two neighbours via this route has been gradually plunging since 2018–19.

With the closure of the Attari border, Afghan imports coming to India via this route could be affected. The measure is also likely to have an economic impact, especially on small-scale traders and manufacturers relying on the cross-border sale of goods, reported The Express Tribune.

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India-Pakistan trade

Despite Pakistan banning trade with India in 2019, Indian imports to the South Asian country have been surging.

As per a report published in Pakistan’s The Friday Times, Pakistan imported $26.8 million worth of goods from India in February 2025, a 28 per cent jump from the $20.94 million in February 2024.

These figures indicate Indian goods have been reaching Pakistan even though the trade ban remains in place. Islamabad had suspended bilateral trade with India after the abrogation of Article 370 that gave special status to Jammu and Kashmir. New Delhi had imposed a 200 per cent tariff on imports from Pakistan after the 2019 Pulwama attack.

Before the trade ban, bilateral trade between India and Pakistan touched $2.56 billion in the fiscal year 2018-19, as per India’s Ministry of Commerce.

Indian exports to Pakistan dropped to $329 million in 2020-21, while Pakistan’s exports to India plunged to $0.4 million by 2022-23.

In 2023, Pakistan’s imports from India were valued at $258.2 million, while India’s exports were at $523.22 million, as per UN COMTRADE.

Indian merchandise exports to Pakistan reached a five-year high of $1.21 billion in 2024, reported Moneycontrol.

Experts told The Friday Times that the trade between the two rival neighbours continues due to indirect routes and exceptions. “Items are shipped via Dubai, Singapore, or Sri Lanka,” Farah Qureshi, a trade researcher in Islamabad, said. “It’s costlier—adding 15-25 per cent to prices—but demand persists.”

India enjoys a trade surplus with Pakistan. Now, we will have to wait and see how shutting the Attari border will shape the trade between the two.

With inputs from agencies