← Concept Library · International Relations
International Relations GS 2 In the news 3 times

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.

Key details
  • 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.
In the news

Tracked since April 22, 2026 · last seen April 24, 2026 · updates as the daily brief publishes

Related concepts
See it in today’s brief. Daily current affairs with every static concept explained in place.
Read the daily brief