In a fiery and unanimous decision that sends a clear message across the border, the Confederation of All India Traders (CAIT) has declared a complete halt to all trade with Pakistan following the brutal Pahalgam terror attack. The resolution, adopted during a high-profile two-day national council meeting in Bhubaneswar with over 200 trade leaders from 26 states, reflects the growing intolerance within India’s business community for any commercial dealings with a nation perceived as hostile.
CAIT Secretary General and MP Praveen Khandelwal condemned the terror strike that claimed innocent lives and called for an all-out boycott of imports and exports with Pakistan. The statement expressed unwavering support for Prime Minister Narendra Modi’s tough stance against terrorism and demanded the harshest penalties for the perpetrators and their supporters
This move comes amid already strained trade relations that have seen bilateral commerce plummet from nearly $3 billion in 2018 to about $1.2 billion in 2024, following earlier terror incidents like Pulwama. Despite official trade restrictions, Indian goods worth over $10 billion annually continue to seep into Pakistan through third countries such as the UAE, Singapore, and Colombo, where products are relabeled and re-exported to bypass bans. This grey-area transshipment model has allowed businesses to maintain unofficial trade flows, but CAIT’s decision signals a push to shut down even these indirect channels.
The boycott is not just symbolic; it marks a critical juncture where India’s traders are aligning with national security imperatives, refusing to engage economically with a neighbor accused of harboring terror. Khandelwal emphasized that in the current environment, continuing trade with Pakistan is unacceptable and that the Indian business community stands united to protect the country’s sovereignty and commercial independence.
This decisive action also coincides with calls from CAIT for stricter regulations on e-commerce and quick commerce platforms domestically, highlighting the organization’s broader agenda to safeguard Indian traders against unfair competition.
In sum, the Pahalgam attack has not only deepened diplomatic rifts but has now triggered a full-scale commercial freeze by India’s largest trade body. For Pakistan, this is a stark warning: hostile acts have consequences that extend beyond politics, hitting economic lifelines hard. India’s traders have drawn a line in the sand-trade with terror-supporting neighbors is over.