Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
India has hiked customs duties on imports from Pakistan to 200 per cent following a terror attack that killed 44 paramilitary policemen in Kashmir's Pulwama.
The move came after India withdrew the ‘Most Favoured Nation’ status it had previously granted to its neighbour.
The Indian government has also announced it will make diplomatic moves to isolate Pakistan on the international stage.
"India has withdrawn MFN status to Pakistan after the Pulwama incident. Upon withdrawal, basic customs duty on all goods exported from Pakistan to India has been raised to 200% with immediate effect," Indian Minister Finance and Corporate Affairs Arun Jaitley tweeted on Saturday evening.
India had granted MFN status, which ensures non-discriminatory trade between two countries, to Pakistan in 1996. Though Pakistan was required to reciprocate the status as a member of the World Trade Organisation, it did not do so, reports bdnews24.com, citing NDTV.
The bilateral trade between the two countries stands at only $2 billion a year, rendering India’s move largely symbolic.
India’s main exports to Pakistan are cotton, dyes, chemicals, vegetables, iron and steel. Pakistan mainly exports fruit, cement, leather, chemicals and spices to India.
Indian Prime Minister Narendra Modi had warned Pakistan on Friday to expect a strong response to the Feb 14 suicide attack, which was the worst in the region in decades.
The US has backed India over the incident, saying that it supports the country’s rights to defend itself against cross-border attacks.