The ongoing West Asia conflict has extracted a toll on India’s trade with the region during March 2026, as India’s goods exports to the region dropped 57.9% to $2.5 billion last month while imports from the war-torn region dipped 51.64% to $8.7 billion.Data from India’s Department of Commerce indicated that imports from the UAE, Iraq, Qatar, and Saudi Arabia in March declined 66.32%, 64.30%, 47.89%, and 37.32%, respectively in March 2026.
Labour-intensive goods exports took a hit in the war-torn month as gems and jewellery exports dropped 30%, exports of readymade garments, drugs and pharmaceuticals dropped 19%, while exports of edible products like rice, spices, fruit and vegetables, cashew and meat and dairy products also took a hit.
Overall non-petroleum and non-gems & jewellery exports in March 2026 dropped to $31.69 billion, compared to $34.25 billion in March 2025. Overall exports of textiles and apparel dropped 14.02% in March 2026.For FY 2025-26, higher prices propelled 24.08% year-on-year rise in gold imports increased 24.08% on-year even as the quantity declined to 721.03 tons in FY 2025-26 from 757.09 tons in FY 2024-25. 149.5% year-on-year rise in silver imports was driven by both rise in prices as well as quantity, which jumped to 7,334.96 tons in FY 2025-26 from 5,164.37 tons in FY 2024-25.Also Read: US President Donald Trump announces 10-day ceasefire between Israel and Lebanon16 of the 30 top export sectors clocked a decline in FY 2025-26, including petroleum products, chemicals, textiles, readymade garments, gems and jewellery, rice, and leather even as engineering goods, electronics, and pharmaceuticals remained prime export drivers.While the US, UAE, China, the Netherlands, and the UK remained among top export destinations, exports to the US dropped by 20%.Also Read: India’s trade deficit widens to $119 billion in FY26; imports rise 6.4%, exports grow 4.2%
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