India's External Sector Exposure to West Asia
Beyond energy and remittances, India's trade relationship with West Asia creates a third channel of vulnerability. The region is a destination for Indian goods including engineering products, textiles, pharmaceuticals, and food items.
- West Asia accounts for approximately one-sixth (~17%) of India's total merchandise exports.
- Major export destinations in the region: UAE (largest), Saudi Arabia, Kuwait, Oman, Iraq.
- India also imports petrochemicals, fertilisers (particularly urea and phosphatic fertilisers via Iran and Saudi Arabia), and gold from the region.
- India-UAE Comprehensive Economic Partnership Agreement (CEPA) entered into force in May 2022, providing preferential market access for Indian goods in the UAE.
- Logistics risks: conflict escalation threatens Red Sea and Gulf of Aden shipping lanes, already disrupted by Houthi attacks since late 2023, which have raised freight rates and extended transit times.
● Tracked since April 22, 2026 · last seen April 24, 2026 · updates as the daily brief publishes
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