India’s exports to West Asia rose 26% year-on-year in May, rebounding from the slump earlier in the year as the closure of the Strait of Hormuz disrupted trade flows. The pickup was driven by Omani ports becoming an alternative route for cargo, allowing goods to bypass the Hormuz blockade and reach Gulf markets.
The resurgence comes as India’s India–Oman Comprehensive Economic Partnership Agreement (CEPA) entered force on June 1, offering immediate duty-free access on about 98% of Oman’s tariff lines and covering roughly 99% of India’s exports by value. This agreement is expected to provide further momentum to bilateral trade and exports to the region.
Indian exports to Oman were valued at around $4 billion in fiscal 2026, with refined petroleum products, including petrol, leading the export basket. The CEPA is seen as India’s “Plan B” amid the Hormuz crisis, positioning Oman as a strategic fallback hub outside the blocked chokepoint for crude, LNG and cargo movement.
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