India’s trade with Gulf countries falter due to Iran war:Oman comes as godsend, imports jump over 3X due to advantageous location

The US-Iran war has affected India’s trade with the Gulf region. The conflict has blocked the Strait of Hormuz, a narrow and vital sea route used to ship oil and other commodities. Because of this blockade, India’s imports from top partners like the UAE, Kuwait, Iraq, and Qatar have been impacted. However, Oman has emerged as a ‘Godsend’ for India. While trade with other Gulf nations has been impacted, India’s imports from Oman have skyrocketed. This is because Oman sits in a unique geographic location outside the dangerous war zone, allowing ships to pass safely. Here is a detailed look at how the war has rewritten India’s trade relations in April 2026 compared to April 2025. Gulf region imports falter in April amid Iran war: According to official trade data for April 2026, India’s total imports from major Gulf economies dropped 34% Year-On-Year (YoY) from $15 billion (₹1.43 lakh crore) in April 2025 to just $9.8 billion (₹94,000 crore) in April 2026. Here is how much imports crashed for each country: Iraq: Imports plunged by a staggering 96.9%. Qatar: Imports collapsed by 93.7%. Kuwait: Imports dropped heavily by 84.4%. United Arab Emirates (UAE): Imports declined by 34.6%. The Oman Miracle While other countries faced total blockades, India’s imports from Oman surged by 246.4%. Imports from Oman rose from a modest $430 million in April 2025 to nearly $1.5 billion in April 2026. According to the global think tank, GTRI, India quickly bought massive amounts of crude oil and urea (fertilizer) from Oman to make up for losses elsewhere. GTRI added that Oman’s secret is its geography. Unlike Iraq or Kuwait, which are trapped inside the Persian Gulf and must use the blockaded Strait of Hormuz, Oman has a long coastline facing the open Arabian Sea. Its major ports, like the Port of Salalah and the Port of Duqm, stayed completely safe and open. Overall exports imports (April 2026) The war did not just hurt imports but also exports. India’s total exports to the Gulf region dropped 36.6% YoY from $4.4 billion (₹42,204.8 crore) to $2.7 billion (₹25,898.4 crore). The UAE: India’s exports to the UAE fell by 36.4%. Even with the drop, the UAE remains India’s largest overall trading partner in the region, though total trade shrunk significantly. Iraq: Outbound shipments from India to Iraq declined by 68.7%. Exports shrank 96.9%. Qatar: Indian exports to Qatar dropped by 76.1%. Kuwait: Though exports dropped less severely than imports, the 84.4% crash in imports has devastated total trade volumes. Oman: Exports to Oman dropped by a tiny 10.3%. Combined with the huge 246.4% jump in imports, Oman is now one of India’s most active trade corridors. What India trades most in Gulf region? UAE: India mostly imports crude oil, gold, diamonds, and petroleum products. India exports jewelry, refined petrol, electronics, and textiles to the UAE. Iraq: India relies on Iraq almost exclusively for crude oil. In return, India exports rice (especially Basmati), tea, and medicines. Qatar: India imports Liquefied Natural Gas (LNG) and plastics. India exports processed foods, steel, and machinery to Qatar. Kuwait: India buys crude oil and organic chemicals. It sells cereals, clothes, and electrical goods to Kuwait. Oman: India imports crude oil, urea (fertilisers), and aluminum. India exports rice, engineering goods, and fuels to Oman. Before the April 2026 war, India shared a highly prosperous and growing trade relationship with these five nations over the last five years (2021–2025): United Arab Emirates (UAE): The UAE has consistently been India’s third-largest global trading partner. After signing a Comprehensive Economic Partnership Agreement (CEPA) in 2022, bilateral trade boomed past $80 billion (₹7.67 lakh crore) annually, driven by massive gold and oil flows. Iraq: For the last five years, Iraq was regularly India’s top or second-largest supplier of crude oil. Annual trade hovered around $30 billion to $35 billion, heavily tilted in Iraq’s favor because of India’s oil thirst. Qatar: Qatar has been India’s most reliable supplier of clean energy, providing over 40% of India’s LNG imports. Total trade averaged $15 billion to $18 billion (₹1.43 lakh crore – ₹1.72 lakh crore) per year. Kuwait: Trade stayed steady between $10 billion and $13 billion (₹95,920 crore – ₹1.24 lakh crore) annually over the last five years, driven entirely by Indian public oil companies buying Kuwaiti crude. Oman: Trade with Oman was stable but smaller compared to the UAE, averaging around $10 billion (₹95,920 crore) annually. However, strategic agreements over the last five years laid the groundwork for Oman to quickly step up as an emergency partner today. The Iran war has shown India that relying on the narrow Strait of Hormuz is dangerous for its energy security. While the crash in trade with the UAE, Iraq, Qatar, and Kuwait is causing short-term pain, the crisis has proven that Oman is a reliable alternative corridor.