India Strikes Double Blow With Operation Sindoor After Complete Trade Halt With Pakistan

In the early hours today, following the Pahalgam terror attack that claimed the lives of innocent tourists in Jammu and Kashmir two weeks prior, Indian forces executed Operation Sindoor, a targeted military offensive that struck nine key terrorist hideouts in Pakistan and PoK, including Jaish-e-Mohammed’s stronghold in Bahawalpur and Lashkar-e-Taiba’s base in Muridke. The cross-border operation, conducted with precision missile strikes, coincided with India’s formal suspension of all trade relations with Pakistan—a move that marks a significant escalation in bilateral tensions.

The Indian Air Force, in coordination with intelligence agencies, carried out the strikes without violating international airspace norms, according to defence sources. This swift retaliation comes amid growing public anger and political pressure after the Pahalgam massacre.

India's strike on terror has dealt a crushing blow to the Pakistan Stock Exchange, which eroded nearly 6% on Wednesday morning. The Operation Sindoor targeted nine terror sites in Pakistan and Pakistan-occupied Kashmir to avenge the terror attack in Pahalgam.

The Karachi Stock Exchange (KSE-100) nosedived 6,272 points in early trade today, crashing to 107,296.64 from Tuesday’s close of 113,568.51 — a staggering single-day drop triggered by India’s confirmation of precision strikes.

Defence officials say the operation aimed to dismantle logistics networks and training centres of groups responsible for cross-border terrorism. While official confirmation of casualties or material damage is pending, high-resolution satellite imagery is being analysed to assess the operation’s success. The Ministry of Defence has so far not issued an official statement but termed the action “measured, proportionate, and resolute”.

Simultaneously, India severed its last economic ties with Pakistan. Trade between the two nations has been declining since 2019, after the Pulwama attack prompted India to impose a 200 per cent duty on Pakistani imports. Official data shows that total bilateral trade shrank from ₹4,370 crore in 2018–19 to just ₹2,772 crore by 2019–20. In 2023–24, India exported goods worth USD 1,180 million to Pakistan, while imports were a mere USD 2.88 million.

“Pakistan is likely to bear the brunt of this rupture more than India,” said a senior analyst at the Indian Council for Research on International Economic Relations (ICRIER). “Its reliance on Indian exports for essentials like pharmaceuticals, plastics, and agricultural goods comes at a time when its economy is already crippled by inflation and IMF dependency.”

India’s Ministry of Commerce notes that trade with Pakistan accounted for less than 0.06 per cent of its overall global trade, indicating minimal economic disruption on the Indian side. Imports from Pakistan included dry fruits, cement, rock salt, Multani mitti, and optical items, while India exported tea, vegetables, pharmaceuticals, plastics, and automotive parts.

A senior government official told The Hindu, “This is not merely an economic decision—it sends a strong political message that terrorism and dialogue cannot go hand-in-hand.”

With the trade cutoff and Operation Sindoor signalling India’s intent to recalibrate its Pakistan policy, geopolitical analysts believe New Delhi is adopting a more assertive approach to national security, underlining its zero-tolerance stance towards cross-border terror.

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