Pulwama attack: India's 200% duty is as good as a ban on Pakistani imports

The duty hike came a day after India withdrew the 'most-favoured nation' status it had granted to Pakistan

India on Saturday hiked the customs duty on all goods imported from Pakistan to 200 per cent, in the aftermath of the Pulwama terrorist attack that claimed the lives of 40 Central Reserve Police Force personnel. 

What does this mean?

In effect, according to agency reports, slapping 200 per cent import duty means almost banning imports from Pakistan. That is because such a big hike in the customs duty will drastically increase the prices of Pakistani goods coming to India, thereby making them far less competitive against other imported goods.