The region accounted for 21.8% of India’s total agricultural and food exports last year, making it one of the country’s most important markets for farm products such as rice, bananas, spices, meat and dairy.
The report warned that prolonged instability, particularly around the Strait of Hormuz, could ripple across India’s farm economy by disrupting shipments and raising insurance costs, potentially affecting farmers, food processors and exporters across multiple states.
Rice, bananas and spices among the most exposed
Cereals, fruits, vegetables and spices make up the bulk of India’s exports to West Asia, totaling $7.48 billion in 2025, or nearly 29% of India’s global exports in this category.
Rice exports are especially vulnerable. India shipped $4.43 billion worth of rice to West Asia, accounting for 36.7% of its global rice exports, making Gulf markets crucial for producers in states such as Punjab, Haryana, Uttar Pradesh, Andhra Pradesh and Telangana.
Banana exporters are even more dependent on the region, with 79.6% of India’s banana exports — worth $396.5 million — going to West Asia, the report said.Spice shipments also show strong exposure. Nutmeg, mace and cardamom exports totaled $295.5 million, with 70.5% shipped to the Gulf region.
Meat and dairy exports highly reliant on Gulf markets
India exported $1.81 billion worth of meat and seafood products to West Asia in 2025.
Nearly 98.9% of India’s sheep and goat meat exports and 97.4% of fresh beef exports were shipped to the region, highlighting the heavy dependence of livestock exporters on Gulf demand.
Dairy exports are similarly exposed. India exported $281.1 million worth of dairy products to West Asia, including butter and dairy fats worth $203 million, which accounted for 58.1% of India’s global exports of these products.
Processed foods, beverages and tobacco also at risk
Exports of processed food, sugar and cocoa preparations to West Asia stood at $1.35 billion in 2025, including sugar, bakery products and processed fruits.
The region is also a major market for Indian beverages. About 81% of India’s beer exports and 55.6% of its soft drink exports were shipped to West Asia last year.
Tobacco shipments are another area of exposure, with exports of raw and manufactured tobacco products totaling hundreds of millions of dollars and accounting for up to 50% of India’s exports in certain tobacco categories.
Need to diversify markets
According to GTRI, several products — including bananas, meat, spices and certain beverages — send more than 70% of their exports to West Asia, making them highly vulnerable to trade disruptions.
“India’s agricultural exports have developed a deep dependence on West Asian markets over the past decade,” the report said, adding that exporters may need to diversify markets to reduce excessive reliance on a single region.