Explainer: What Attari-Wagah closure means for India-Pakistan trade

Harsh Kumar
2 min read28 Jul 2026, 11:22 AM IST
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For India's trade policy, the Attari-Wagah shutdown is a case study in how geopolitical tensions can reshape commercial corridors.
Summary
Developed by the Land Ports Authority of India as the country's first integrated land port, the 120-acre facility has direct connectivity to National Highway-1. Besides facilitating bilateral trade with Pakistan, it also served as an important transit route for trade with Afghanistan.

The suspension of trade at the Attari-Wagah Integrated Check Post (ICP) has effectively shut down India's last operational land trade route with Pakistan. Responding to a recent Lok Sabha query, the government said any decision on resuming trade would be considered within the same national security framework under which it was suspended. Mint explains the corridor's importance as a vital gateway for imports from Afghanistan and a key support for Punjab's extensive logistics ecosystem, even as direct bilateral trade with Pakistan shrank sharply after ties deteriorated in 2019 following the Pulwama attack in Jammu & Kashmir.

What is the Attari-Wagah trade route?

The Attari-Wagah Integrated Check Post (ICP), located about 28 km from Amritsar on the India-Pakistan border, has historically been India's only operational land trade corridor with Pakistan. Developed by the Land Ports Authority of India (LPAI) as the country's first integrated land port, the 120-acre facility has direct connectivity to National Highway-1. Besides facilitating bilateral trade with Pakistan, it also served as an important transit route for trade with Afghanistan.

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The corridor handled a wide range of commodities, including agricultural produce, textiles, chemicals, dry fruits, cement, gypsum, rock salt, herbs, soybean, poultry feed, vegetables, red chillies, plastic granules, yarn and glass products. Over time, it supported an extensive border economy comprising traders, transporters, customs brokers, freight forwarders, warehouse operators and logistics firms. The check post is equipped with customs processing halls, cargo and passenger terminals, warehouses, cold storage, quarantine facilities, weighbridges and mechanised cargo-handling infrastructure.

Why has India suspended trade through the Attari-Wagah border?

India shut down the Attari ICP following the decisions taken by the Cabinet Committee on Security (CCS) on 23 April 2025 in the aftermath of the Pahalgam terror attack that killed 26 civilians. Citing the cross-border linkages of the attack, the government ordered the immediate closure of the integrated check post, while allowing individuals who had crossed with valid documents to return until 1 May 2025.

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The suspension was reinforced through a Directorate General of Foreign Trade (DGFT) notification on 2 May 2025. The notification prohibited the direct or indirect import or transit of goods originating in or exported from Pakistan, irrespective of their import status, with immediate effect and until further orders. The government said the measure was taken in the interest of national security and public policy, with any exception requiring prior approval. Together, these decisions effectively brought merchandise trade through the Attari land route to a halt.

What do the latest trade figures show?

Trade through the Attari-Wagah ICP has steadily declined since bilateral relations deteriorated in 2019 before virtually coming to a standstill after the 2025 closure.

Land Ports Authority of India data shows total trade through the route stood at ₹4,370.78 crore in 2018-19, before falling sharply to ₹2,772.04 crore in 2019-20. It remained subdued over the following years, at ₹2,257.55 crore in 2022-23, before recovering to ₹3,886.53 crore in 2023-24 and ₹4,148.53 crore in 2024-25, largely on account of Afghanistan-linked shipments after direct India-Pakistan trade had already ceased.

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In 2025-26, trade collapsed to just ₹117.02 crore involving 214 cargo movements, reflecting only residual activity before the route came to a complete halt.

Why does the issue matter for India's trade policy?

The closure of the Attari-Wagah route illustrates how trade policy has become increasingly intertwined with national security.

Although the corridor accounted for only a small share of India's overall merchandise trade, it was strategically important as the country's only direct land trade gateway with Pakistan and a key transit route for Afghanistan. The government's latest position underscores that security priorities currently outweigh commercial considerations.

About the Author

Harsh Kumar is a policy reporter at Mint (HT Media Group), where he covers the Ministry of Commerce and Industry along with key departments of the Ministry of Finance, including the Department of Economic Affairs (DEA) and the Department of Financial Services (DFS). With over five years of experience in business and economic journalism, he has developed strong expertise in tracking policy developments and their wider economic impact.<br><br>He has previously worked with Business Standard, Moneycontrol, and Outlook Money, where he reported extensively on banking, financial services, and the broader economy. Over the years, he has built a reputation for delivering accurate, insightful, and impactful stories, supported by a keen eye for detail and a consistent track record of breaking exclusive news.<br><br>An alumnus of Jamia Millia Islamia, Harsh closely follows regulatory changes and key economic trends shaping India’s financial and industrial landscape. His reporting aims to simplify complex policy issues for a wider audience while maintaining depth and credibility.<br><br>Outside of work, he enjoys tracking policy developments, finding scoops, and travelling, reflecting his curiosity about how economic decisions shape everyday life.

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