Gulf Trade Disruption Exacerbates Decline in India's Industrial Exports

India's Exports to the Gulf Region Slump in March Amid West Asia Conflict

India's exports to the Gulf region took a significant hit in March 2026, as the ongoing war in West Asia disrupted shipping routes. According to data from the commerce ministry, total exports to the region fell to $2.15 billion in March, down a staggering 57.6 percent from $5.07 billion a year ago.

The impact of the conflict was far more severe on industrial goods and discretionary items than on food shipments. The Gulf Cooperation Council (GCC), comprising six countries - Saudi Arabia, United Arab Emirates, Qatar, Kuwait, Oman, and Bahrain - was particularly affected by the disruptions.

Among food categories, key staples recorded relatively smaller declines in both value and percentage terms. Non-basmati rice exports stood at $37.6 million, down 5.5 percent from $39.8 million a year ago. Fresh vegetable shipments were $15.6 million, a decline of 15.7 percent from $18.6 million, while basmati rice exports fell to $123.8 million, down 26 percent from $167.3 million.

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In contrast, industrial goods and discretionary categories saw sharper contractions. Petroleum product exports declined to $218.8 million, a fall of 65.8 percent from $640.1 million. Iron and steel shipments dropped to $9.9 million, plunging 90.2 percent from $101.5 million, while auto component exports stood at $9.6 million, down 77 percent from $41.6 million.

Several other industrial categories showed similar trends. Plastic raw materials fell 72.6 percent to $9.1 million, while electric machinery exports declined 60.2 percent to $37.5 million, highlighting the sharper impact on sectors dependent on bulk movement and industrial demand.

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Even within food exports, the variation persisted. While staples such as non-basmati rice and vegetables recorded limited declines, other food items saw sharper contractions. Spices exports were $31.1 million, down 49 percent, while marine product shipments dropped to $6.4 million, a decline of 67.7 percent.

The divergence was also visible in discretionary consumer categories. Gold and precious metal jewellery exports plunged 71.3 percent to $207 million in March, while cashew exports declined 74.5 percent to $2.9 million.

The contrast becomes starker when set against the annual trend. While exports to the region declined by only about 2 percent during FY26, the steep March contraction suggests the West Asia conflict had an immediate impact on trade flows across sectors.