Govt collating data of indirect exports to Pak from 3rd nations

New Delhi: The government is collating data to figure out the quantum of indirect exports of Indian goods to Pakistan from third countries in a bid to check such rerouting of shipments to the neighbouring country, sources said.

The government is working with the industry to look into alternate routes for shipments of goods through air route in the backdrop of Pakistan closing its air space for Indian carriers, they said.

Goods like flowers, fruits and vegetables are exported through air routes to regions like Middle Eastern countries.

These restrictions have been imposed following the terrorist attack on tourists in Pahalgam last week. 26 people were killed in the horrific incident, evoking a sharp response from the government. The export data is being collected from sources like customs, export promotion councils and other departments, the sources added.

According to the economic think tank GTRI, Indian goods worth over $10 billion are reaching Pakistan every year indirectly through ports, such as Dubai, Singapore, and Colombo, bypassing trade restrictions.

Global Trade Research Initiative (GTRI) has stated that Indian firms send goods to these ports, where an independent company offloads the consignment and keeps the products in bonded warehouses, where goods can be stored without paying duties while in transit.

“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 has said.

This method, he said, helps firms to bypass India-Pakistan trade restrictions, sell goods at higher prices, using the third country route and avoid scrutiny since the trade appears to come from other countries.

One of the sources said the government is also examining the exports to Pakistan through online mode. The trade between India and Pakistan is coming to a complete halt after both the countries announced closure of land routes.