Indian goods worth over $10 billion are reaching Pakistan every year indirectly through ports such as Dubai, Singapore, and Colombo, bypassing trade restrictions, according to economic think tank GTRI.
The Global Trade Research Initiative (GTRI) said Indian firms send goods to these ports and 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 such as Pakistan, where direct trade with India is not allowed,” GTRI founder Ajay Srivastava 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, as the goods appear to have come from other countries. The higher price covers storage, paperwork and access to a closed market.
“While this transshipment model isn’t always illegal, it sits in a grey zone. It shows how businesses find creative ways to keep trade going —often faster than governments can react. GTRI estimates Indian goods worth over $10 billion reach Pakistan via this route annually,” Srivastava said.
Netherlands trade
India and the Netherlands have discussed ways to boost trade and investment during the visit of commerce secretary Sunil Barthwal to Hague.
The visit assumes significance as India’s exports to the Netherlands are recording healthy growth despite global economic uncertainties.
“Commerce secretary Sunil Barthwal and ambassador @ktuhinv met DG foreign economic relations Michiel Sweers in The Hague to discuss strengthening bilateral trade and economic ties.
“Discussions focused on enhancing collaboration through the joint trade and investment committee and advancing strategic economic cooperation,” the department of commerce said in a post on X.
In 2024-25, India’s exports to the Netherlands rose 1.75 per cent to $22.76 billion from $22.36 billion in 2023-24. The imports during the period stood at over $5 billion.
