Ceasefire Uncertainty Disrupts India’s West Asia Trade, Exporters Turn to Europe and Latin America

The announcement of a two-week ceasefire by Iran and America brought some respite to the exporters who supply their goods to West Asia.

However, the ambiguity surrounding the ceasefire once again disheartens these exporters. They feel that they need to seek out some other markets.

Finding a market and securing customers from that market is not an easy task, but that is precisely what they need to do.

Around 20 percent of India's total exports go to West Asia. In addition to that, many agricultural and processed foods are exported to the Gulf region and other West Asian nations.

Due to the war,, the exports to West Asia from India were badly affected in March, and the total merchandise exports in March will be lower than those of March last year.

Federation of Indian Export Organizations (FIEO) President S.C. Ralhan believes that March's merchandise exports could decline by seven to eight percent. The government will release the March export figures on April 15th.

Basmati rice exporters reported that, given the difficulties in supplying goods to West Asia, they have begun focusing on the Latin American and European markets, and are receiving more orders from these markets than before.

The Directorate General of Foreign Trade is also assisting exporters in finding alternative markets. India exports the most to the UAE, a West Asian country, after the United States. Nine percent of India's exports went to the UAE alone between April and February of the 2025-26 financial year.

Exports to the UAE have declined since March due to the war. To compensate for this, the possibility of export to countries like Singapore, Malaysia, Hong Kong, Germany, Italy, South Africa, Peru, Chile is being explored.