India's Directorate General of Foreign Trade in a notification said the ban will take effect immediately.
Suspected militants killed at least 26 tourists in last week's attack on a mountain destination in the Pahalgam area of the Kashmir valley.
India has accused Pakistan of involvement in the attack, which Islamabad denies. Pakistan said it has “credible intelligence” that India intends to launch military action.
Trade between the two nations has dwindled over the last few years.
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