West Asia’s trade share has risen, while Iran and Israel remain marginal in India’s overall trade basket.
Share in India’s trade (%)
(Note: West Asia includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, UAE.)
The UAE anchors India’s trade relationship with West Asia.
India-West Asia trade (FY25, $ b)
The Strait of Hormuz remains a critical chokepoint. Around 40-50% of India’s crude imports, 55% of LNG supplies, and 80-90% of cooking gas imports pass through the Strait of Hormuz.
Benchmark Brent futures settled near $73 a barrel on Friday, around $6 higher since early February. Prolonged tensions could lead to higher oil risk. The economic spillover could widen the current account deficit and increase pressure on the rupee. Remittance flows may turn vulnerable, while higher freight, insurance costs, transit delays, airspace curbs and supply chain costs could add to the burden.
West Asia is India’s third largest export market, accounting for 13% of India’s exports in FY25.
Major exports to GCC ($ billion)
Energy dominates imports from the region, accounting for 16.9% of imports in FY25.Top imports ($ billion)