The deteriorating relations between India and Pakistan over a deadly shooting in Kashmir are starting to have economic consequences for both nations. Pakistan's decision to close its airspace to carriers from India will result in longer and more expensive flights for Indians, while forcing Pakistan to increase pharmaceutical imports from other countries. Air India, owned by Indian conglomerate Tata Group, will be the most affected. The extra flying time may eventually make flights more expensive and airfares could rise if restrictions continue beyond six months. Pakistan's decision to halt trade with India is unlikely to have a major impact, as regular diplomatic flare-ups between the two nations have prevented close economic ties.