In response to the recent terror attack in Pahalgam, India’s government announced a series of retaliatory measures, including the shutdown of the Attari land-transit post. This decision, coupled with the expulsion of Pakistani military attaches and the suspension of the Indus Water Treaty, has received strong backing from Amritsar’s business and trade community. Local traders, including those in the dry fruit sector, have voiced unwavering support for the government’s actions, emphasizing national security over cross-border trade. This article examines the implications of the government’s response and its effects on local businesses and the broader economic landscape.
India’s Response to Pahalgam Attack
The Indian government has taken decisive action in the wake of the deadly terror attack in Pahalgam, Kashmir, which claimed the lives of 26 civilians. On Wednesday, a series of robust measures were announced, including the expulsion of Pakistani military attaches, the suspension of the Indus Water Treaty of 1960, and the immediate closure of the Attari land-transit post. This closure, although symbolic, reflects the government's firm stance against cross-border terrorism linked to Pakistan.
The decision to shut down the Attari post is particularly significant given the historical importance of this trade route between India and Pakistan. Since 2019, the bilateral trade has been halted due to escalating tensions, but imports from Afghanistan have continued through the same route. The government’s move to close the post further underscores its efforts to disrupt any potential links between Pakistan and terrorist activities in India.
Trade Community’s Unwavering Support for Government Action
In Amritsar, a city traditionally reliant on trade through the Attari-Wagah border, business leaders and traders have expressed strong solidarity with the government's decisions. Anil Mehra, president of the Federation of Haryana and Dry Fruit Commercial Association, emphasized that the country's security comes first, aligning with the government's stance on taking tough action against Pakistan in response to the terrorist attack.
“The country comes first, and we are fully in support of the government’s measures,” Mehra said, echoing the sentiment of many local traders who are accustomed to the economic ties with Pakistan. Despite these ties being severed, the local business community prioritizes national security and expresses confidence in the government's approach to safeguarding Indian interests.
Rajdeep Uppal, an Amritsar-based industrialist and former chairman of CII Amritsar Zone, also voiced his full backing for the government’s actions. He pointed out that the local trade community had supported similar measures in 2019, and that same unity remains in place today. The firm stance against Pakistan, despite potential economic challenges, reflects a broader national sentiment of prioritizing security over trade.
Impact on Amritsar’s Trade and Industry
Amritsar’s business landscape has been closely intertwined with trade routes connecting India and Pakistan, particularly in sectors such as dry fruit imports. The Attari-Wagah land route, historically a significant trade corridor, sees a seasonal uptick in trade, especially in the dry fruit sector. The main season for importing dry fruits from Afghanistan begins in July and continues until December, and the Attari-Wagah route has played a vital role in facilitating this trade.
However, with the breakdown in relations and the suspension of cross-border trade, local businesses have had to adapt. Since 2019, India has imposed a 200 percent customs duty
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