Pahalgam terror attack: CAIT traders cut all trade ties with Pakistan, demand crackdown on e-commerce practices

In a decisive move following the recent terror attack in Pahalgam, the Confederation of All India Traders (CAIT) has voted unanimously to sever all trade ties with Pakistan, according to reports from ANI and other agencies on April 27. The resolution was passed during CAIT’s two-day national governing council meeting in Bhubaneswar, attended by over 200 trade leaders representing 26 states.

Praveen Khandelwal, CAIT Secretary General and Member of Parliament for Chandni Chowk, announced that the council unanimously adopted a resolution condemning the terrorist attack in Pahalgam and calling for a complete boycott of trade with Pakistan.

A statement from CAIT emphasized that the business community has resolved to immediately cease all imports and exports with Pakistan in response to the brutal killing of innocent tourists. 

"Traders have shown their complete support for the decisive actions taken by Prime Minister Narendra Modi against terrorism, calling for the harshest penalties for those responsible and their accomplices," the statement noted.

The backdrop to this move lies in a steady deterioration of trade ties since the Pulwama attack in 2019. According to CAIT, bilateral trade between India and Pakistan shrank from nearly $3 billion in 2018 to approximately $1.2 billion by 2024.

Between April 2024 and January 2025, India exported about $500 million worth of goods — primarily pharmaceuticals, chemicals, sugar, and auto parts — to Pakistan, while imports stood at a mere $0.42 million. "Now, traders have resolved to completely terminate this trade as well," CAIT stated.

Trade leaders emphasized that continuing commerce with a hostile nation is unacceptable. Khandelwal asserted, "In the present situation, the business community throughout the nation stands united, ready to take any necessary measures under the leadership of Prime Minister Narendra Modi to safeguard our sovereignty and commercial independence."

During the Bhubaneswar meeting, CAIT also pushed for swift government action against what they termed malpractices by quick commerce and e-commerce businesses. They proposed a 28 percent Goods and Services Tax (GST) on transactions via these platforms, arguing that the convenience offered should be treated as a luxury and taxed accordingly.

CAIT further accused e-commerce and quick commerce platforms of regulatory violations, counterfeit sales, and anti-trader conspiracies. They called for immediate enforcement of e-commerce regulations under the Consumer Protection Act and the FDI policy.

"All trade leaders also demanded transparency and accountability in digital commerce. CAIT stressed that the technology, pricing, and vendor selection processes of e-commerce platforms should be clear and accountable, ensuring that small grocery store owners and offline traders are protected," the statement concluded.