Indian firms send goods worth over ₹85,000 crore per year to Pakistan via Dubai, Singapore, among other ports: GTRI

Indian companies are sending goods worth more than ₹85,000 crore ($10 billion) per year to Pakistan through indirect ports like Dubai, Singapore, and Colombo, among many others, to bypass the trade restrictions between the nations, reported the news agency PTI, citing an economic think tank GTRI.

Global Trade Research Initiative (GTRI) explained that the Indian companies were sending their goods to these ports, where independent companies are offloading the consignment. They keep these goods in bonded warehouses where items are stored without paying duties while in transit, according to the report.

(The information in this article is from a GTRI report. Mint could not independently verify them)

The Indian-made goods are likely relabelled as ‘Made in UAE’ and then shipped to countries like Pakistan, which cannot trade directly with India.

“In the bonded warehouse, the labels and documents are modified to show a different country of origin. For example, Indian-made goods may be relabelled as 'Made in UAE'. After this change, they are shipped to countries like Pakistan, where direct trade with India is not allowed,” GTRI Founder Ajay Srivastava told the news agency.

This route also sells goods at a higher price using a third-country port in the middle to avoid regulatory scrutiny. The higher price covers the storage and paperwork costs, giving access to a closed market.

The ‘Grey Zone’

GTRI Founder Ajay Srivastava also highlighted that the trade model is not illegal; however, it does sit in a grey area as companies try to find new ways to bypass the trade restrictions to gain access to restricted markets.

“While this transhipment model isn't always illegal, it sits in a grey zone. It shows how businesses find creative ways to keep trade going -- often faster than governments can react. GTRI estimates Indian goods worth over USD 10 billion reach Pakistan via this route annually,” said the GTRI Founder, reported the news portal.

India's exports to Pakistan in April-January 2024-25 were at $447.65 million, according to the agency report. The report also mentioned that the trade between India and Pakistan has been brought to a halt after India decided to close the Attari Integrated Check Post amid the Pahalgam terror attack.

As per the reports, Pakistan also declared to suspend all trade ties between their nation and India. 

India exports

According to the Ministry of Commerce and Industry data, India has exported a total of $820.93 billion of goods and services in the financial year 2024-25, compared to $778.13 billion in the previous financial year.

India primarily exports goods like rice, tea, coffee, tobacco, spices, drugs and pharmaceuticals, electronic goods, marine products, etc., to other world nations.

As of the 2024-25 fiscal year ended on March 31, 2025, the top export destinations along with the export growth for India are the United States at 35.06 per cent, Australia at 70.81 per cent, Kenya at 98.46 per cent, were among other nations.

India imports its commodities from the United Arab Emirates (UAE), China, Saudi Arabia, Kuwait, Thailand, the United States, and Russia, among other global nations. 

(With Inputs from PTI)