India’s West Asia Exports stood at $5.30 Billion in May 2026, Near Pre-War Levels

Key Takeaways

• Indian merchandise exports to West Asia stood at USD 5.30 billion for May 2026. The pre-war monthly average was $6 billion. The gap has narrowed to under 2% from May 2025, after exporters rerouted cargo through Oman’s three ports.
   
• Exports had hit a low of $2.62 billion in March 2026 when the Strait of Hormuz closed. April brought a partial recovery to $4.2 billion before May’s near-full rebound.

India’s West Asia Exports fell 56% in March 2026. What changed by May?

The Strait of Hormuz closed in February. That one event cut India’s West Asia exports from a normal $6 billion a month to $2.62 billion in March 2026. Commerce Secretary Rajesh Agrawal also presented the May figures to the press in New Delhi on June 15. 

The strait, which is only 33 km wide at its narrowest, links India to the UAE, Oman, Iran, Bahrain, and Saudi Arabia. The US-Israel military campaign against Iran, which started in February, is what closed it.

Exporters found a way to bypass this. It meant sending cargo via the Omani ports of Duqm, Sohar, and Salalah. A corridor to the UAE’s Jebel Ali was opened alongside. Agrawal said supply chains “remained entrenched,” but goods were “going through different routes.” 

April saw a partial recovery to $4.2 billion. May brought exports to $5.30 billion, against $5.38 billion in May 2025. Second-highest monthly figure of 2026, below only January’s $6.48 billion.

Steel, Rice, Jewellery: Which Sectors got Hit? Who is Still Hurting?

Not every sector recovered equally. Gems & jewellery, engineering goods, electronics, petroleum products, and rice were the hardest hit segments up to March & April. The supply disruption in the Gulf led to rising input prices in the country. Steel, plastic, and rubber all got more expensive. Those cost increases did not reverse the moment export numbers recovered.

Country-wise, May 2026 showed a mixed picture:

Imports from the region were $10.74 billion in May 2026, as compared to $13.05 billion in May 2025. Imports from the UAE decreased by 10.17% to $5.7 billion. Oman imports jumped 305.66% to $1.93 billion, a direct result of the rerouting. Saudi Arabia’s imports grew 12.54% to $2.12 billion. India shifted oil purchases toward Russia and the United States during this period. Gulf sourcing dropped.

June 19 Peace Deal: Will the Strait Reopen and stay Open?

Ajay Srivastava of the Global Trade Research Initiative had warned in February that an extended Hormuz closure could “send oil prices soaring, sharply inflating India’s import bill, worsening inflation, and putting pressure on the country’s fiscal position.” 

That warning looks less urgent now. On June 16, US President Donald Trump said Washington and Tehran agreed to end their 107-day war. The signing is scheduled for June 19 in Switzerland.

Agrawal was careful. He said India hopes it is “a sustained deal” and that reopening the Strait of Hormuz would be “good” for trade. India’s overall goods exports in May 2026 rose 18% year on year to $45.2 billion. If the June 19 deal holds and the strait reopens before July, the Oman detour becomes unnecessary. Monthly West Asia numbers could cross $6 billion again by July or August 2026.

Conclusion

Three months ago, India’s West Asia trade looked badly broken. March exports at $2.62 billion felt like a floor nobody wanted to test. The Oman rerouting changed that faster than most expected. May’s $5.30 billion is not pre-war normal, but it is close. June 19 is now the date that matters most. A signed, held deal means ships go back through Hormuz. That is when the real recovery starts.

FAQs

1. Does the closure of the Strait of Hormuz in Feb 2026 see a fall in India’s oil imports from the Gulf?

Yes. India’s sourcing from the Gulf fell drastically after the Hormuz closure. The gap in sourcing was bridged between Russia and the USA. West Asia imports fell by 17.38% YOY to $10.74 billion in May 2026.

Q2. India rerouted trade through Oman in weeks. Why can’t it build its own chips or AI models just as fast?

This is because trade rerouting needs logistics. Chips and AI need years of R&D investment. India spends around 0.65% of GDP on R&D. China spends 2.4%, South Korea 4.9%, and Japan 3.3%. No shortcut exists for that gap.