India government has started hitting back at Pakistan for its shameful act against the country. As a reply to the neighbouring country’s support in Pulawama terror attack, India took strong economic action that would certainly affect Pakistan’s economy. India yesterday raised the customs duty to 200% on all goods imported from the neighbouring country, including fresh fruits, cement, petroleum products and mineral ore.
The decision would significantly hit Pakistan’s exports to India, which stood at USD 488.5 million (around Rs 3,482.3 crore) in 2017-18 as it would drastically increase the prices of its goods here.
“India has withdrawn MFN (most favoured nation) status to Pakistan after the Pulwama incident. The country invoked a security exception clause of the World Trade Organisation (WTO) to withdraw this status. Upon withdrawal, basic customs duty on all goods exported from Pakistan to India has been raised to 200% with immediate effect. India granted the MFN status to Pakistan way back in 1996, but the neighbouring country had not reciprocated.
The two main items imported from Pakistan are fruits and cement, on which the current customs duty is 30-50% and 7.5%, respectively.
Items which Pakistan exports to India include fresh fruits, cement, petroleum products, bulk minerals and ores, finished leather, processed minerals, inorganic chemicals, cotton raw, spices, wool, rubber product, alcoholic beverages, medical instruments, marine goods, plastic, dyes and sports goods. India mainly exports raw cotton, cotton yarn, chemicals, plastics, manmade yarn and dyes to Pakistan.
Total India-Pakistan trade has increased marginally to USD 2.41 billion in 2017-18 as against USD 2.27 billion in 2016-17. India imported goods worth USD 488.5 million in 2017-18 and exported goods worth USD 1.92 billion. During April-October 2018-19, India’s exports to Pakistan stood at USD 1.18 billion, while imports were USD 338.66 billion.
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