Archive · 23 May 2025
India-Pakistan Tensions Impact Border District Economies
Imagine that the areas next to the border with Pakistan are having a tough time.
Recent fights between India and Pakistan have made things worse.
Poverty is not decreasing as fast as it should, and trade isn't doing well, except in one area of Gujarat.
Government money that helps these areas has also decreased.
This is hurting the economy of those border areas.
India-Pakistan tensions and cross-border shelling threaten economic activity in western border districts.
Poverty reduction slowed in many western border districts between 2015-16 and 2019-21 compared to state averages.
Exports from western border districts, excluding Gujarat, stagnated at 0.3% of India's total exports from FY22 to FY25.
Exports from Gujarat's western border districts increased from 1.9% (FY22) to 3% (FY24) of India's total exports.
Government funding for border area development has significantly declined since FY20, particularly in western border states.
- Who
- The report analyzed the economic performance of border districts.
- What
- Economic slowdown in border districts, slower poverty reduction, and stagnant exports.
- When
- Analysis focuses on periods between 2015-16 and 2025 (FY22-FY25).
- Where
- Western Border Districts of India, specifically Gujarat, Rajasthan, Punjab, and J&K
- Why
- To assess the economic impact of India-Pakistan tensions and cross-border issues on border districts.
- Border Districts Analyzed
- 22
- States Included
- Gujarat, Rajasthan, Punjab, J&K U.T.
- Export Share (Western Border Districts, ex. Gujarat, FY22-FY25)
- 0.3%
- Gujarat Export Share (FY22)
- 1.9%
- Gujarat Export Share (FY24)
- 3%
- Eastern Border Districts Export Share
- Under 0.5%