While exports dipped by 57.95 per cent last moth, imports declined 51.64 per cent due to the conflict, he said.
The joint attack launched by the US and Israel in February has led to temporary closure of a key sea trading route – Strait of Hormuz.
It is a key waterway (33 km wide) for shipments from India to the Middle East or west Asian nations that include the UAE, Oman, Iran, Bahrain and Saudi Arabia.
He said that logistical challenges would pose difficulties for Indian exports but “our export industry is going to adapt, and we are going to look at new markets also”.
Also Read: India’s trade deficit narrows to $20.67 billion in March on West Asia risks
India normally exports goods worth about USD 6 billion every month to the region, but in March it was only about USD 2.5 billion.Exports fell by around USD 3.5 billion in March to that region.
The main five sectors that have recorded dip in shipments include gems and jewellery, engineering goods, electronic items, petroleum products and rice.
“These are the five areas where we have seen a reduction,” he told reporters. “Our exports to Middle East in the month of March has dipped by 3.5 billion dollars,” he said adding April may also be a tough month.
He expressed hope that whatever India was not able to send or sell to the Middle East because of these logistical challenges, exporters will be able to diversify to other markets.
“Because of this, recalibration of supply chains does take place in such kind of crisis. It’s not only India-Middle East logistics challenge, it’s a world-Middle East logistics challenge that we are anticipating,” he added.
Disruptions in the movement of oil and gas from the Middle East countries have also led to an increase in the prices of raw materials such as steel, plastic and rubber.
The government has rolled out a host of measures to cushion exporters from the impact of the conflict in the Gulf region, a key market for India’s exports such as gems and jewellery, rice and pharma, which were valued at about USD 57 billion in 2024-25.
The conflict is posing challenges for exporters to ship goods to the Gulf region, with which India had a bilateral trade of USD 178 billion in 2024-25 (USD 56.87 billion exports and USD 121.67 billion imports).