Overview

• Indian goods are routed through ports in Dubai, Singapore, and Colombo, where bonded warehouses facilitate relabeling to bypass trade restrictions.
• The Global Trade Research Initiative (GTRI) estimates that $10 billion worth of Indian goods reach Pakistan annually through these indirect channels.
• This transshipment practice, while not strictly illegal, operates in a grey area by masking the origin of goods and avoiding direct scrutiny.
• Pakistan's pharmaceutical sector, reliant on India for 30–40% of its raw materials, has activated contingency plans to secure alternative supplies.
• Formal trade between India and Pakistan remains halted after reciprocal measures following the April 2025 Pahalgam terror attack.