Turbulent Tides: India’s Trade Hit Hard by Gulf Conflict

India's trade with the Middle East saw a dramatic drop in March due to disruptions from the US-Israel attack on Iran. Exports and imports fell over 50%, mainly affecting gems, jewellery, and engineering goods. The closure of the Strait of Hormuz intensified these challenges, reshaping India's export strategies.

India's trade relations with the Middle East encountered significant setbacks in March, following a joint military operation by the United States and Israel against Iran. This conflict caused exports from India to plummet by 57.95% while imports saw a 51.64% decline, largely due to turmoil affecting a vital shipping passage.

The Strait of Hormuz, central to trade between India and Middle Eastern nations such as the UAE, Oman, Iran, Bahrain, and Saudi Arabia, suffered temporary closure. As a major traffic lane for regional shipments, its blockage created logistical nightmares, stabbing at the heart of India's export activities valued at roughly USD 6 billion monthly to this region.

Commerce Secretary Rajesh Agrawal highlighted sectors like gems, jewellery, and engineering goods as hardest hit, yet emphasized India's evolving strategy to explore new markets. Despite these challenges, the Indian government is implementing measures to support exporters, ensuring resilience amidst uncertainties in global supply chains.

(With inputs from agencies.)