Surat: In a response to ending special status for Jammu & Kashmir, Pakistan has suspended the bilateral trade relations with India. Trade experts have said that the decision would hit Pakistan more as they import man-made fabric (MMF) from Surat.
Majority of the traders of Surat markets imports cheap fabrics, saris, lehengas and other fabrics from Surat’s wholesale market via Delhi and Amritsar.
The decision to end ties may not hurt the Indian economy significantly as trade with Pakistan accounted for 0.1 per cent of India's total trade but it is likely to hurt Pakistan more.
Though Trade relations between India and Pakistan were already strained following the Pulwama terror attack, it will face a tough time. Chairman of Southern Guajrat Chamber of Commerce and Industry’s (SGCCI) textile committee, Devkishan Manghani said, “Pakistan used to import Raw matterial from Surat and after finishing they use to export it to other islamic countries. Now, the situation has worsen and they will have to shut down this trade."
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Earlier Pakistan was importing the raw matterial directly from India. After the suspension decision now Surat exporters have decided not to supply matterial any more. When Pakistan will need this matterials they will have to purchase it from Dubai, Srilanka, Bangladesh...which will cost them more.
Surat exporters says that after Pakistan's decision, there will be very minimal impact on Surat textile. The fabrics produced by Surat market will be sold to other countries soon but now they have broke trade ties with Pakistan.
In February, India had withdrawn the "Most Favoured Nation" status given to Pakistan on the backdrop of the Pulwama attack. A 200 per cent import duty was also slapped on Pakistan's goods.
