Among the most exposed categories is rice, with over $4 billion of Indian rice exports headed to the region
Less than a tenth of India’s exports routed to countries linked to the Strait of Hormuz may face difficulty finding alternative markets in the event of prolonged disruption, while the bulk of shipments could be redirected to other major economies, a Moneycontrol analysis shows.
Middle Eastern economies, especially the UAE, had become one of India's major export markets for rerouting goods in the wake of US tariffs last year. A Moneycontrol analysis shows that the European Union, the US and ASEAN may offer similar relief to Indian exporters in 2026 in the wake of the Iran-US war.
The assessment comes amid rising geopolitical risks following the Iran-US conflict, with exporters reassessing trade flows through one of the world’s most critical maritime chokepoints.
India exported goods worth $62.4 billion to economies linked to the Strait of Hormuz in 2024. Of this, only around $5.3 billion, or less than 10 percent, may face significant challenges in being redirected elsewhere. The remainder could be absorbed by markets such as the European Union, the US, ASEAN, the UK, and others.
Among the most exposed categories is rice, with over $4 billion of Indian rice exports headed to the region. Rice growers may face the sharpest disruption if Gulf demand weaken...
© Copyright 2025 The SSResource Media.
All rights reserved.