The West Asia conflict has quietly redrawn India's trade map over the first two months of the current financial year, with dramatic shifts in both import sources and export destinations, according to latest data from India's commerce department.
Import Sources: Oman Emerges, UAE Declines
During April-May 2025, Oman was the 30th largest source of imports for India. In April-May 2026, it vaulted to 10th position, with imports jumping 3.8 times to $3.4 billion, driven by energy shipments, the commerce department reported.
Meanwhile, the United Arab Emirates slipped to fourth place among import sources, as Russia returned to the second spot and the United States took third. India's hunt for LPG (cooking gas) helped push the US higher. Energy imports also lifted Brazil, with shipments rising 2.8 times to $2.7 billion. Shipments from Peru surged 3.7 times to over $2 billion, making it the 20th biggest import source, up from 35th a year earlier.
| Import Source | Rank Apr-May 2025 | Rank Apr-May 2026 | Import Value Apr-May 2026 | Change YoY |
|---|---|---|---|---|
| Oman | 30 | 10 | $3.4 billion | +3.8x |
| Brazil | — | — | $2.7 billion | +2.8x |
| Peru | 35 | 20 | >$2 billion | +3.7x |
| UAE | — | 4 (down from higher) | — | Decline |
Export Destinations: Singapore Overtakes China
On the export front, Singapore overtook China and the Netherlands to become India's third largest export destination in April-May 2026, trailing second-ranked UAE by just $180 million. Exports to Singapore surged 2.2 times to $5.1 billion, driven mainly by a rise in shipments of oil products, which were in demand due to the war in West Asia.
Tanzania emerged as the eighth biggest export destination, compared to 25th in April-May 2025. Commerce Secretary Rajesh Agrawal said oil and gems and jewellery were driving exports to Tanzania, which shot up from $800 million in April-May 2025 to $2.2 billion so far this year. South Africa moved up two places to 10th, while neighboring Sri Lanka jumped to 12th, with exports rising nearly three times to $1.8 billion.
Exports to China rose over 25%, a notable increase given China's tight trade barriers, according to commerce department data.
Oman: New Gateway Amid Strait of Hormuz Blockade
The blockade of the Strait of Hormuz, a crucial link to the Persian Gulf, has transformed Oman into a regional gateway. Commerce Secretary Rajesh Agrawal said that Oman, with which India rolled out a free trade agreement earlier this month (June 2026), has opened three of its ports — Sohar, Salalah, and Duqm — for Indian goods to transit to other countries, including the UAE.
As a result of these efforts, exports to West Asia are nearly back to last year's level, although imports remain around 18% lower due to energy supply disruption.
"Oil and gems and jewellery are driving exports to Tanzania," said Commerce Secretary Rajesh Agrawal, citing a jump from $800 million to $2.2 billion in April-May exports.
The reordering of India's trade partners underscores how geopolitical shocks can rapidly reconfigure supply chains and bilateral trade flows, with immediate consequences for importers, exporters, and trade policy professionals.
Sources:
