New Delhi – India's commercial exchanges with West Asian nations have largely returned to pre-conflict levels, despite ongoing geopolitical tensions in the region. Data for September 2026 indicates a stabilization, with key trade metrics closely aligning with figures from the previous year.
Trade Resilience Amidst Regional Tensions
Last month, India's exports to West Asia registered $5.56 billion, a marginal dip from $5.94 billion recorded in September 2025. Concurrently, imports from the region stood at $13.64 billion, nearly matching the $13.76 billion from September 2025. This resilience follows a period where India’s exports to West Asia in June, July, and August 2026 surpassed those of the corresponding months in 2025, while imports saw a slight decrease.
The United Arab Emirates (UAE) continues to be a crucial partner, ranking as India's second-largest export market. From April to September 2026, exports to the UAE totaled $16.7 billion, though this was slightly lower than the $18.75 billion in the first half of the previous fiscal year.
Merchandise Exports Target $500 Billion
Despite the volatile global environment, India's overall merchandise exports have maintained strong growth momentum. Commerce Secretary Rajesh Agarwal expressed optimism, stating that goods exports are expected to exceed $500 billion this fiscal year. "We are very hopeful that if the trend of last year continues, goods exports in the second half of the fiscal year will be higher than the first half. We are looking at a trend that merchandise exports are much higher than $500 billion," Agarwal noted.
The cumulative value of merchandise exports for April-September 2026-27 reached $259.89 billion, marking an 18.51% increase from $219.30 billion during the same period in 2025-26. Specifically, September saw a robust 23.9% surge in goods exports, climbing to $44.4 billion from $36.08 billion a year earlier.
Sharp Decline in Gold and Silver Imports
A significant development in India's trade landscape is the substantial fall in gold and silver imports. This decline is partly attributed to higher import duties, according to the Commerce Secretary. In September, gold imports dramatically fell to $1.8 billion from $9.61 billion in September 2025. August 2026 also saw gold imports nearly halve to $2.3 billion compared to $5.44 billion a year prior.
Over the first half of the fiscal year, gold imports decreased by 27.32% to $19.27 billion from $26.51 billion. Similarly, silver imports for the same period dropped by 25.71% to $2.4 billion from $3.21 billion, with September's silver imports standing at $665.08 million against $1.3 billion in September 2025.