The conflict is posing challenges for exporters to ship goods to the Gulf region, with which India had a bilateral trade of USD 178 billion in 2024-25 (USD 56.87 billion exports and USD 121.67 billion imports).
India’s merchandise trade with West Asia recorded a steep decline in April for the second consecutive month, as ongoing disruptions in ship movements triggered by the conflict involving the US, Israel and Iran continued to impact cargo movement across the region.
Commerce Secretary Rajesh Agrawal said India’s exports to West Asian countries fell by more than 28 per cent year-on-year to USD 4.16 billion in April, compared to USD 5.78 billion during the same month last year.
Imports from the region also declined sharply, dropping 31.64 per cent to USD 10.47 billion from USD 15.32 billion a year earlier.
Among key trading partners, India’s exports to the UAE contracted 36.39 per cent to USD 2.18 billion, while shipments to Saudi Arabia slipped 2.89 per cent to USD 852 million in April.
In March, India’s exports and imports with the West Asia region plunged by over 50 per cent.
The joint attack against Iran launched by the US and Israel in February has led to restrictions on the movement of consignments through a key sea trading route – the Strait of Hormuz.
It is a key waterway (33 km wide) for shipments from India to the West Asia or West Asian nations that include the UAE, Oman, Iran, Bahrain and Saudi Arabia.
India normally exports goods worth about USD 6 billion every month to the region.
The main sectors that have recorded a dip in shipments include gems and jewellery, engineering goods, electronic items, petroleum products and rice.
Disruptions in the movement of oil and gas from the West Asia countries have also led to an increase in the prices of raw materials such as steel, plastic and rubber.
The government has rolled out a host of measures to cushion exporters from the impact of the conflict in the Gulf region, a key market for India’s exports such as gems and jewellery, rice and pharma, which were valued at about USD 57 billion in 2024-25.
The conflict is posing challenges for exporters to ship goods to the Gulf region, with which India had a bilateral trade of USD 178 billion in 2024-25 (USD 56.87 billion exports and USD 121.67 billion imports).
With inputs from agencies
First Published:
May 15, 2026, 19:32 IST
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