West Asia Tensions Reshape India's Trade: Supply Chains, Costs at Risk

• India's trade with West Asia transformed over the past decade due to geopolitical tensions and conflict, reducing commercial flows with key partners.
• Fresh hostilities following Israel’s strikes on Iran on February 28 are expected to deepen disruptions, impacting trade routes and costs.
• Israel and Iran, once accounting for 70% of India's non-GCC West Asia trade, now represent only one-fifth by 2024 due to sanctions and realignments.
• US sanctions on Iranian oil exports drastically cut India-Iran bilateral trade from $26.5 billion to $2.5 billion in a decade.
• India's defense imports from Israel surged, with arms and ammunition rising 100-fold and aircraft parts increasing significantly, indicating deeper strategic cooperation.