KARACHI - The Indian government suffered a loss of $410 million in its exports to Pakistan in 2008-09 because of the political tension that was magnified by Indians after the Mumbai tragedy. Details obtained by The Nation reveal that during 2008-09 Pakistans imports from India dropped to $1.03 billion as against $1.44 billion in 2007-08, showing a decline of $410 million. Surprisingly, the countrys exports to India edged up by $51 million or 19.45 per cent in the last financial year, but the imports from the neighbouring arch-rival fell by 28 per cent. After the Mumbai incident in November 2008, the Indian authorities and politicians created maximum tension with Pakistan, which ultimately damaged Indian exports. In 2008-09, the bilateral trade of the two countries depleted to $1.34 billion from $1.70 billion in 2007-08. The imports of the country from India declined by 38 per cent and fell to $76 million, against $124 million in June 2008. Exports from Pakistan to India in June this year slightly fell to $15.21 million, compared to $17 million in June last year. Political and diplomatic tension between the two countries had damaged the foreign trade of India, whose share in bilateral trade was more than three times the share of Pakistan, sources said. Worth noting is that the two countries mutual trade witnessed a boom during the previous regime, led by ex-President Pervez Musharraf. In 2006-07 for the first time Indian exports to Pakistan mounted to above $1 billion mark. In 2007-08 the exports from India to Pakistan further increased to $1.442 billion, the highest in a year since the Partition. However, the Mumbai tragedy again dampened the trade between the two countries. Foreign trade analysts said that the trade liberalisation had benefited much to India and caused a huge trade deficit to Pakistan. Both the countries liberalised their bilateral trade in 2005-06 as a result their mutual trade showed a substantial growth over 2004-05. Pakistans imports in 2005-06 increased to $ 770 million, from $ 485 million in 2004-05, while countrys exports to the neighbouring trade partner rose to 264 million in fiscal year (FY) 2006, from $ 190 million in FY 2005. Pakistan is importing machinery, vegetables, spare parts, chemicals and raw materials from India. Before the Mumbai incident, the bilateral trade of the two countries paralysed in 2000 when India suspended Samjhota Express service while holding Pakistan responsible for attack on its Parliament. Pakistan not only denied the attack, but also gave a befitting response to India by suspending trade through rail and road from Wahga Border that embarrassed India later on. However, in 2003-04 both the countries normalised their trade and diplomatic relationship as a result of which the mutual trade among the two started showing improvement.