Last Saturday, Iranian gunboats fired at two India-flagged ships as they tried to exit the Strait of Hormuz (AP Photo)
India’s engineering goods exports to the West Asia and North Africa (WANA) region slipped by 50% to $864 million in March against the same period last year, dragged down by Iran war and subsequent closure of the Strait of Hormuz, data released by the Engineering Exports Promotion Council (EEPC) said.
Engineering goods comprised nearly a quarter of the total goods that India exported globally in the financial year 2025-26 (FY26). While for the WANA region, the share was nearly 10%.
The decline in exports to the West Asia region dragged the overall engineering goods shipments, which range from iron and steel, hand tools, industrial machinery, to automobile components and vehicles, in March to just 1.1%. In contrast, exports had grown 12.90% in February.
Exporters have said that the impact of the West Asia crisis has been high due to rising trade with the UAE, which has become one of the largest trading partners after the FTA with the transhipment hub in 2022.
“The UAE, being a trade-transhipment hub, several Indian exporters also have their warehouses in there for further trade with Europe, Africa and the US. The recent geopolitical conflicts in the region have also impacted these warehouse activities,” EEPC said.
Data showed that exports of engineering products in March, such as IC engines and auto components, declined 13% and 6% respectively.
While two and three-wheeler exports jumped by 26%, exports of cranes, lifts & winches slipped 22%, medical and scientific instruments 18%, bicycle & parts 9%, and hand tools & cutting tools declined by 10%.
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EEPC said that while exports in March only grew by 1.1% to $10.9 billion, imports also jumped by 5.6% to $13.3We billion compared to $12.6 billion in March 2025.
“Exports to the West Asia region have taken a hit. Shipments to the UAE and Saudi Arabia are down 66% and 45%. Exports to the US have also declined by over 2%, but we have gained in other countries and managed to register growth. But April could reveal the actual impact since everything from shipping routes to freight rates has been impacted,” Pankaj Chadha, EEPC Chairman, said.
EEPC data showed that while exports to the West Asia region declined, exports to China showed a strong growth. While exports in March jumped by 111.5% to $457 million, shipments between April 2024 and March 2025 also jumped 32% to $3.5 billion.
“India’s exports performed significantly well in the Association of Southeast Asian Nations (ASEAN), as it recorded more than 50% increase and North East Asia, where exports increased by 29% during March 2026. Exports also rose for Oceania by more than 5%, which may indicate that some trade diversion could be done successfully towards India’s East as Indian exporters faced logistics issues in the West,” EEPC said in its report.
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Commerce and Industry Ministry data had shown that India’s overall goods exports in March slipped by 7.4% to $38.92 billion compared to $42.05 billion in March last year, and imports declined 6.9% to $59.59 compared to $63.74 billion. Exports to the West Asia region had slipped by 57.95% and imports by 51.64% due to the war.
Last Saturday, Iranian gunboats fired at two India-flagged ships as they tried to exit the Strait of Hormuz. The vessels, oil tanker Sanmar Herald and bulk carrier Jag Arnav, turned back into the Persian Gulf after coming under fire.
Scores of commercial vessels with thousands of seafarers have been stuck in the Persian Gulf since the West Asia war began on February 28, as vessel movements through the Strait of Hormuz came to a halt. The Strait is among the world’s most critical chokepoints for energy supplies, and accounts for a fifth of global oil and liquefied natural gas (LNG) flows.
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