A yr of Israel-Hamas war: Trade with W Asia holds steady

However, trade with Israel, Lebanon, Jordan declines during January-July period

- DHRUVAKSH SAHA, SHREYA NANDI & SUBHAYAN CHAKRABORTY

A year after a Hamas attack against Israel on October 7 and the ensuing Israeli invasion of the Gaza Strip, India's trade with most West Asian countries has largely escaped any major disruption, except with countries like Israel, Lebanon, and Jordan. However, repeated flare-ups of geopolitical tensions in the region continue to drive up shipping and logistics costs.

The conflict has led to two wide-scale missile attacks on Israel by Iran, a limited ground offensive by Israel into neighboring Lebanon to confront the Tehran-aligned Hezbollah, and maritime attacks by Yemeni Houthi rebels on Israel-bound ships.

There are fears of the conflict escalating and further inflaming the troubled region, which accounts for almost a third of global crude oil production. Despite this, crude oil flows from West Asia have remained robust.

More importantly, India's trade with the Gulf Cooperation Council (GCC) — comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates — has remained robust.

During the first seven months of the calendar year, exports to GCC nations grew by 17.9 per cent year-on-year (Y-o-Y) to $34.9 billion. Similarly, imports grew 10 per cent at $68.92 billion during January-July, according to the latest commerce department data.

Among other West Asian countries — Iran, Iraq, Israel, Jordan, Lebanon, Syria, and Yemen — exports contracted by nearly a third to $5.58 billion during January-July. As much as 59 per cent of the $5.58 billion worth of goods were exported to Iraq and Israel.