India's trade with West Asia saw a substantial recovery in May 2026, with exports to the region climbing to $5.3 billion. This figure marks a sharp rebound from the $2.62 billion recorded in March and $4.2 billion in April, signaling a return to near pre-conflict trade levels.
The commerce ministry's provisional data, released on June 15, indicated that May's export performance to West Asia was the second highest this calendar year, surpassed only by January's $6.48 billion. This positive trend comes as new shipping routes and ports in Oman and neighboring countries have become operational, mitigating previous supply chain challenges.
Commerce Secretary Rajesh Agrawal confirmed that supply chains have remained robust, with goods now being rerouted through alternative paths. He highlighted the significant efforts by exporters and agencies to establish these new corridors. Several Omani ports, including Sohar, Salalah, and Duqm, are now key nodes in this expanded network, connecting to trade hubs like UAE's Jebel Ali port.
Specific increases in merchandise exports were noted across several West Asian nations. Exports to the UAE rose 3.18% year-on-year to $3.06 billion in May 2026, while goods destined for Saudi Arabia saw an 11.12% increase, reaching $0.92 billion. Trade with Syria and Yemen also contributed to the overall growth.
While overall goods exports from India in May 2026 grew by 18% year-on-year to $45.2 billion, imports also rose by 20.6% to $73.41 billion, resulting in a trade deficit of $28.21 billion. Notably, oil imports from West Asia have decreased, with India diversifying its energy sources to include countries like Russia and the US.
Officials expressed cautious optimism, hoping that a proposed ceasefire in the region would bring sustained peace and facilitate the full opening of critical waterways such as the Strait of Hormuz, further bolstering trade stability.