India’s trade with West Asia contracted in May due to disruptions caused by the US-Iran conflict, though it is showing signs of a gradual recovery, a senior official said on Monday.Commerce Secretary Rajesh Agrawal said India’s exports to the region had declined in March due to the conflict, but improved in April and further in May, reaching ”more or less” the same level as in May last year.
The country’s merchandise exports to West Asia dipped 1.5% to $5.30 billion in May this year from $5.38 billion in May 2025.
”So we have more or less achieved the same level of exports in spite of the challenges that we are facing in that region,” he told reporters here.He added that good growth has been recorded in countries such as the UAE (3.2%), Saudi Arabia (11%), Jordan (211%), Syria (209%), and Yemen (16.5%).Despite challenges, Agrawal said supply chains remain entrenched.Indian exporters are using three ports (Duqm, Sohar and Salalah) of Oman to push exports to the region.India’s imports from the region dipped 17.38% to $10.7 billion in May this year, as against $13 billion in May 2025.The data comes amid US President Donald Trump announcing that the US and Iran have finalised a deal to end their 107-day war, which triggered a global energy crisis.The peace agreement is scheduled to be signed on June 19 in Switzerland.
The US-Iran conflict has severely impacted the movement of ships carrying cargoes in international waters, particularly through the Strait of Hormuz.India’s exports as well as imports with the West Asian region declined by over 28% in April. In March, the exports and imports plunged by over 50%.The joint attack against Iran launched by the US and Israel in February 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 Middle East or West Asian nations that include the UAE, Oman, Iran, Bahrain and Saudi Arabia.India normally exports goods worth about $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 Middle East countries have also led to an increase in the prices of raw materials such as steel, plastic and rubber.When asked about the impact of the announcement of the peace deal, the secretary said, ”We hope it’s a sustained deal”.He added that the opening of the Strait of Hormuz would be ”good” for India’s trade.As per the commerce ministry data, India’s exports to the UAE and Saudi Arabia rose by 3.18% and 11.12% to $3.06 billion and $915.54 million in May, respectively.During May, imports from Saudi Arabia and Oman grew by 12.54% to $2.12 billion and 305.66% to $1.93 billion, respectively.However, imports from the UAE dipped 10.17% to $5.7 billion in May.
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