West Asia Trade Rebounds in May After Initial Shock from US-Iran Conflict
India normally exports goods worth about $6 billion every month to the region.
New Delhi: Commerce secretary Rajesh Agrawal on Monday said that India’s trade with West Asia contracted in May due to disruptions caused by the US-Iran conflict, but it is showing signs of a gradual recovery. “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,” Agrawal told reporters here.
India’s merchandise exports to West Asia dipped 1.5 per cent to $5.30 billion in May this year from $5.38 billion in May 2025. “Good growth has been recorded in countries such as the UAE (3.2 per cent), Saudi Arabia (11 per cent), Jordan (211 per cent), Syria (209 per cent), and Yemen (16.5 per cent). Despite challenges, supply chains remain entrenched,” Agrawal said.
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 per cent 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 expected 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 per cent in April. In March, the exports and imports plunged by over 50 per cent.
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.
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.