Key facts
- Oman has risen to become India's 10th largest import partner, up from 30th, with imports surging 3.8 times to $3.4 billion.
- Tanzania has become India's eighth-largest export destination, up from 25th, with exports increasing from $800 million to $2.2 billion.
- Singapore is now India's third-largest export destination, driven by a 2.2-fold increase in petroleum product imports.
- The conflict in West Asia has disrupted shipping routes, impacting trade flows and energy supplies.
- India's imports from West Asia are down 18% despite restored export levels to the region.
The conflict in West Asia has triggered a significant reordering of India's trade flows, with Oman and Tanzania seeing substantial shifts in their roles as trade partners. Oman has emerged as a crucial import source, particularly for energy, jumping to 10th place from 30th, with imports surging 3.8 times to $3.4 billion.
These changes extend beyond the Gulf region. The UAE has dropped to fourth among India's import partners, while Russia has regained the second position. India's pursuit of alternative Liquefied Petroleum Gas (LPG) supplies has boosted imports from the United States. Purchases from Brazil and Peru have also seen dramatic increases, with imports from Brazil rising 2.8 times to $2.7 billion and from Peru climbing 3.7 times to over $2 billion.
Export patterns have also been significantly altered. Singapore has surpassed China and the Netherlands to become India's third-largest export destination. Tanzania has risen to become the eighth-largest destination for Indian exports, a notable jump from 25th place a year ago, while South Africa has climbed to the 10th position.
According to Commerce Secretary Rajesh Agrawal, Tanzania's ascent is attributed to increased exports of oil products and gems and jewellery, which grew from $800 million to $2.2 billion. Exports to Sri Lanka have nearly tripled, reaching $1.8 billion and making it India's 12th-largest export market.
Singapore's increased imports of Indian petroleum products, a 2.2-fold rise, have fueled its growth. The disruption of shipping routes through the Strait of Hormuz has heightened Oman's strategic importance, with the nation facilitating Indian goods transit to regional destinations. While these arrangements have helped restore India's exports to West Asia to near previous levels, imports from the region remain approximately 18% lower due to ongoing disruptions in energy supplies.