In a significant shift in India’s trade dynamics, Singapore emerged as the country’s second-largest merchandise export destination in April 2026, overtaking the UAE amid disruptions in West Asian shipping routes linked to the ongoing conflict around the Strait of Hormuz.
According to quick estimates released by the Ministry of Commerce, India’s merchandise exports to Singapore surged 179.18% year-on-year to $3.20 billion in April, compared to $1.14 billion during the same month last year. In contrast, exports to the UAE declined sharply by 36.39% to $2.19 billion from $3.43 billion a year earlier.
The United States retained its position as India’s top export destination, with shipments valued at $8.48 billion during the month.
The reshuffle reflects changing trade and logistics strategies as exporters increasingly reroute cargo through alternative hubs to avoid disruptions in critical West Asian maritime corridors. Both Singapore and the UAE function as major transshipment and re-export hubs, indicating that the movement may represent a shift in trade routing patterns rather than a direct change in final consumption markets.
Industry observers point to the weaponisation of the Strait of Hormuz and the resulting uncertainty in regional shipping lanes as a major factor influencing global cargo flows. Traders are increasingly relying on safer and more stable logistics hubs for storage, redistribution, and onward shipment.
The changes were also visible on the import side. China remained India’s largest import source in April, followed by Russia, the United States, and the UAE. Meanwhile, imports from Oman, Peru, and Nigeria registered substantial growth amid heightened energy-security concerns.
Imports from Oman jumped 246.42% year-on-year to $1.49 billion, while imports from Peru rose 315.56% to $1.26 billion. Imports from Nigeria more than doubled to $1.14 billion during the month.
The developments come amid continued volatility in global crude oil and LNG markets caused by tensions around the Strait of Hormuz, a vital maritime chokepoint for global energy trade.
The impact has already begun reflecting in India’s domestic economy. State-run fuel retailers recently increased petrol and diesel prices by ₹3 per litre on May 15 — the first fuel price hike in four years — as oil marketing companies attempted to offset rising crude import costs.
Facing mounting pressure from elevated energy prices and a weakening rupee, the Narendra Modi-led NDA government has also initiated austerity measures aimed at reducing fuel consumption and containing the import bill.
The latest trade data underlines two parallel trends shaping India’s external trade landscape — the rerouting of exports through alternate maritime hubs and a recalibration of import sourcing driven by energy-security priorities amid an increasingly uncertain geopolitical environment.
