India has officially suspended trade operations at the Attari-Wagah land border following national security concerns. The decision halts transit previously used for Afghan-linked goods and ends a significant logistics corridor in Punjab. This suspension follows a sharp decline in trade volumes that began in fiscal 2025-26.
Detailed Coverage
The Attari-Wagah Integrated Check Post, once a bustling gateway for land-based commerce, has effectively ceased all trade operations. This decision, driven by national security requirements, marks the permanent closure of India's final active land trade corridor with Pakistan. While direct bilateral trade between the two nations had been minimal for several years, the route served as a critical transit point for goods moving between India and Afghanistan.
Economic Impact on Punjab Logistics
The closure directly affects the local economy in Punjab, particularly businesses that relied on the 120-acre facility near Amritsar. Developed by the Land Ports Authority of India, the checkpoint previously supported a complex ecosystem of traders, transporters, and logistics companies. These firms specialized in moving a variety of goods, including dry fruits, textiles, chemicals, and agricultural products. With the suspension of all import and transit permits for goods originating from Pakistan—a measure formalized by the Directorate General of Foreign Trade—these logistics operations must now pivot toward alternative trade routes, which may involve higher transportation costs and longer transit times.
Decline in Trade Volumes
The transition toward this suspension was gradual. According to data from the Land Ports Authority of India, total trade through the Attari-Wagah route stood at ₹4,370.78 crore in the 2018-19 fiscal year. By 2019-20, volumes dipped to ₹2,772.04 crore. Although the route saw a temporary uptick to ₹4,148.53 crore in 2024-25, this activity was almost exclusively driven by transit goods linked to Afghanistan rather than direct bilateral trade. The subsequent fiscal year, 2025-26, witnessed a dramatic collapse to ₹117.02 crore, signaling the functional end of the corridor well before the formal administrative closure.
Future Outlook for Cross-Border Transit
The government has stated that the resumption of any activity at this facility remains entirely dependent on national security considerations. For investors tracking the logistics and transport sectors in North India, the key monitorable will be how companies that previously operated in the Amritsar border belt adjust their supply chain routes. While the trade volume through this specific gate had become marginal in the context of India’s overall import-export landscape, the finality of the closure removes any remaining uncertainty regarding the route's viability for future commercial planning.