India’s Exports to Gulf Rebound in May, UAE Shipments Lead Recovery

India’s exports to the Gulf Cooperation Council (GCC) rebounded in May after a steep decline during the previous two months, with higher shipments to the United Arab Emirates (UAE) driving the recovery. According to data analysed by Moneycontrol, exports to the six-member regional bloc rose 30.8% month-on-month to $4.55 billion in May, although they remained 0.75% lower than the corresponding period last year.

The recovery follows a period of disruption caused by tensions in West Asia. Exports to GCC countries had declined 4.3% year-on-year in February before plunging 57.6% in March. Shipments also remained more than 30% lower in April. Before the disruption, exports to the region had increased 15.9% year-on-year to $5.68 billion in January.

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UAE Accounts for Bulk of the Recovery

The UAE contributed the largest share of the improvement in May. India’s exports to the country climbed to $3.06 billion from $2.18 billion in April, reflecting a month-on-month increase of about $880 million.

A significant portion of that rise came from exports of ships, boats and floating structures. Shipments under this category reached $833.52 million during May, with exports to the UAE alone amounting to $825.9 million. In comparison, exports of ships to the UAE stood at $125.9 million in April.

Gold exports also recovered after remaining negligible in April. Shipments of the precious metal to Gulf countries totalled $137.8 million in May, with nearly the entire volume destined for the UAE.

Together, exports of ships and gold contributed around $838 million to the increase in India’s exports to the UAE between April and May. Additional gains were recorded in iron and steel as well as zinc exports.

Recovery Concentrated in Select Commodities

According to Moneycontrol, the sharp increase in ship exports may not necessarily indicate sustained growth in the sector. Trade data for vessels can fluctuate significantly depending on delivery schedules, ownership transfers and project completion, where a single shipment can materially influence monthly export figures.

On an annual basis, exports of ships to the UAE rose 412% to $825.9 million in May from $161.4 million a year earlier, making it India’s largest export category to the country during the month. Gold shipments also registered a sharp recovery from April’s low base.

Other Gulf Markets Show Moderate Growth

Export performance across the remaining GCC markets was comparatively subdued. Petroleum products, telecom equipment, engineering goods and machinery continued to dominate exports to Saudi Arabia. Shipments to Oman were led by petroleum products, iron and steel, machinery, motor vehicles and rice.

The GCC comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE. While May’s trade figures indicate a recovery in exports to the region, the latest data suggests that the improvement was concentrated in a few high-value categories rather than reflecting a broad-based expansion in demand across Gulf markets.