Datanomics: Diversification helps India's exports thrive despite W Asia war

India's export diversification cushions the impact of the West Asia war, with merchandise exports rising nearly 10% despite a sharp fall in shipments to the region.

India’s diversification efforts have borne fruit. Its total merchandise exports rose by 9.73 per cent despite a 21.74 per cent decline in exports to West Asia during March-June due to the war. Exports to the UAE — India’s largest export market after the US and the biggest market in West Asia — suffered the most. During March-June, exports to the UAE declined by 25.54 per cent year-on-year (Y-o-Y). Exports of chemical products, ready-made garments, agricultural goods, and gems & jewellery to the UAE saw the highest decline, while China and Hong Kong were the top destinations where India diversified its exports. However, exports to the UAE normalised in July, registering 10.15 per cent Y-o-Y growth.