India’s economic response: Gurugram industry demands ban on exports to Pakistan and Turki

KKN Gurugram Desk | Following the Indian Armed Forces’ decisive action under Operation Sindoor, which targeted cross-border threats from Pakistan, the focus is now shifting from military to economic retaliation. In a major move, the Gurugram Industrial Association has proposed to halt all exports to Pakistan and actively counter Pakistan’s position in global trade markets—particularly in the textile, apparel, rice, leather goods, and surgical instruments sectors.

The industry-led initiative is being seen as a strategic economic maneuver aimed at curtailing Pakistan’s global trade influence while simultaneously boosting India’s manufacturing exports under the “Make in India” program.

Pakistan’s Export Backbone: Textile and Apparel Sector Under Scanner

According to data from global trade monitoring agencies, Pakistan’s textile and apparel sector contributes an estimated 54–60% of the country’s total exports. In the financial year 2023–24, Pakistan’s textile and apparel exports reached approximately $16.6 billion USD, making it the nation’s single largest export domain.

Other major exports from Pakistan include:

• Basmati and non-basmati rice

• Leather goods

• Surgical instruments

• Handicrafts

Given the heavy reliance on textile exports, Indian industry leaders believe that targeting this sector could deal a severe blow to Pakistan’s fragile economy, already reeling from internal economic pressures and international isolation.

Gurugram’s Strategic Economic Initiative

The Gurugram Industrial Association has proposed that its member companies:

1. Immediately review any ongoing exports to Pakistan and Turkey.

2. Identify sectors where Indian goods directly compete with Pakistani exports.

3. Focus on quality manufacturing to replace Pakistani products in the global market.

4. Collaborate with government agencies to implement an export freeze at the policy level.

According to the association, the emphasis will be placed on encouraging Indian firms to capture global markets where Pakistani textiles and goods currently dominate, particularly in Europe, Middle East, and Africa.

Textile Sector: The Battlefield for Economic Supremacy

Rising geopolitical tensions have turned textiles and apparels into a new economic battlefield. With India, Pakistan, and Bangladesh being major exporters in this sector, competition is already fierce.

Key Figures (2023–24):

• Pakistan’s textile exports: $16.6 billion

• India’s textile and handicraft exports: Accounted for 8.21% of India’s total exports

• Bangladesh’s textile exports: Over $40 billion (for comparison)

While Pakistan enjoys a lower labor cost advantage, India is recognized for superior product quality, compliance standards, and a strong industrial base.

Expert Opinions: India Can Fill the Global Gap

Rohit Ahluwalia, Director, Foundation for Economic Development:

“Textiles are Pakistan’s economic lifeline. If India strategically challenges Pakistan’s export capabilities, particularly in Europe and the Gulf region, it will have a serious impact on their economy. India’s challenge is not capacity, but policy flexibility.”

He also emphasized the need to reform India’s labor laws to fully utilize the country’s vast workforce.

Arvind Rai, CEO, Modelama Export Pvt Ltd:

“With modest government support, Indian exporters can easily capture market share currently held by Pakistan. We are already producing high-quality garments. What we need is a push to scale globally.”

Ground-Level Push: Industry Leaders Voice Their Support

Rajendra Sachdeva, Owner, Sachdeva Fabrics:

“Indian manufacturers are already producing better and more affordable products. It’s time we identify Pakistan’s key global clients and offer them superior alternatives.”

Sachdeva urged the government to coordinate trade intelligence with the private sector to identify global contracts where Indian companies can step in.

Trade Federation Backs Economic Action

Deepak Maini, President, Progressive Federation of Trade and Industry:

“The military response reminded us of two things: First, India stands united against terrorism. Second, our indigenous defense manufacturing—powered by ‘Make in India’—is capable and effective.”

Maini stressed that India’s economic countermeasures should be structured and sustained, calling for a nationwide industrial policy alignment to boycott Pakistan’s exports and investments wherever applicable.

Can India Replace Pakistan in Key Export Markets?

India already has strong trade relationships with regions where Pakistan is also active. These include:

• European Union: Apparel, leather goods, rice

• Middle East (UAE, Saudi Arabia): Rice, garments, carpets

• Africa: Budget textiles and basic medical tools

• Southeast Asia: Home textiles and bulk fabrics

By offering quality alternatives at competitive prices, India can strategically capture these markets, particularly in sectors where Pakistani exporters have held ground due to pricing, not quality.

Challenges on the Road Ahead

While the plan is ambitious, certain structural challenges must be addressed for it to succeed:

1. Labor Law Rigidities

India’s labor laws often restrict flexibility for seasonal or export-oriented industries. Simplifying these regulations will allow companies to scale quickly and compete on price.

2. Export Incentives

The government must introduce or extend schemes like:

• RoDTEP (Remission of Duties and Taxes on Export Products)

• PLI (Production-Linked Incentives) for textiles

• Interest subvention on export loans

3. Infrastructure

Logistics, port connectivity, and electricity costs must be optimized for Indian exporters to gain an edge.

Is a Full Export Ban to Pakistan Possible?

Though private associations can recommend export restrictions, an official ban must be enforced at the central government level through the Ministry of Commerce. Given the current geopolitical environment, such a ban is politically viable but would require:

• WTO compliance checks

• Trade route monitoring

• Coordination with customs and port authorities

Sources suggest that if the Gurugram model is successful, other industrial hubs like Ludhiana, Surat, and Tirupur may follow suit.

Turkish Exports Also Under Watch

Interestingly, the Gurugram Industry Association has also hinted at applying the same economic pressure on Turkey, which has recently criticized India on international platforms over Kashmir and Palestine. Trade actions may extend beyond Pakistan if geopolitical alignment continues to influence global economics.

From Retaliation to Reinvention: Make in India 2.0

This entire push also aligns with the broader vision of ‘Make in India 2.0’, a renewed strategy focusing on:

• Export-oriented manufacturing

• Replacing imports with local production

• Creating global Indian brands

The crisis is being viewed not just as an opportunity for retaliation but a chance for economic reinvention, especially in labor-intensive sectors like textiles, leather, and small surgical tools.

With diplomatic ties strained and military action having delivered a message, the economic front has now emerged as the next battleground. By targeting Pakistan’s most vulnerable economic sector—textile exports—India is sending a clear message: The price of state-sponsored hostility will be felt across every dimension, including trade.