Exports to West Asia fall 7%, Jordan, Oman buck the trend

NEW DELHI: India's exports to West Asia fell 7.2% during the first half of the current financial year, with Oman and Jordan bucking the trend. While Oman gained due to the closure of the Strait of Hormuz, Jordan was a surprise, with exports from India doubling on account of a spike in buffalo meat, oil products and pharma exports.

Among the top products exported from India to the Gulf nations, jewellery, oil products and mobile phones have seen a dip, while ships and boats and basmati rice are among the top gainers. Shipments of petrol and diesel to GCC and other West Asian countries are estimated to have fallen 27% to $3.5 billion, while gold and other jewellery to the Gulf trading bloc is down 8.6% to $3.2 billion, latest available data with the commerce department showed.

While exports to Oman have jumped 45% to $3.2 billion during April-Sept, the value of goods shipped to Jordan soared 2.4 times to $1.2 billion. In case of Oman, the free trade agreement was implemented a few months ago, which has provided a boost to Indian exports, particularly products such as ships and boats, processed minerals, some chemicals, basmati rice and iron and steel. While some of the goods are for the Oman market, the country's port is also acting as the gateway to the UAE as the Strait of Hormuz was shut and traffic still remains disrupted.

In case of Jordan, four product groups added $592.7 million, accounting for 85% of the total increase of Indian exports of close to $700 million during April-Sept, trade think tank GTRI said. Petrol and diesel nearly trebled from $110.3 million to $327.3 million. Rice, mostly basmati, shot up from $47.6 million to $253.5 million, while buffalo meat exports rose from $48.8 million to $192.4 million and medicine exports rose from $13.5 million to $39.7 million, it said.

Trade body Fieo said with Jordan's rising fuel demand, India has strengthened its position by supplying approximately 9,000 barrels a day, although Saudi Arabia remains the dominant source. "Jordan may increasingly be serving a dual role for Indian exporters - as a growing destination market in its own right and as a potential gateway to other markets in West Asia and North Africa. While the increase in petroleum exports appears closely linked to expanding demand and changes in sourcing patterns, the exceptional growth in buffalo meat and pharmaceutical exports suggests that regional distribution and possible re-export activity may also be contributing factors," it said.