New Delhi: The conflict in Iran could dent India's $4.5 billion of electronics and tech exports to the Gulf despite negligible trade in these items with Iran itself, people in the know told ET.
The UAE was the second-largest buyer of Indian electronic products, according to data from the commerce and industry ministry. In the first nine months (April-December) of FY26, the UAE was the destination for $4.1 billion of electronics exports.
From burgeoning smartphone exports to the UAE to a strengthening supply of consumer electronics to Israel, consignments to the region are shipped over Iranian airspace or near its territorial waters in the restive Straits of Hormuz in the Persian Gulf, all of which remain restricted as of Sunday.
"We are studying the situation. Sea freight rates are already high," a senior official from the ministry of electronics and information technology said.
The UAE was the second largest destination for smartphones produced in India, with $3.1 billion worth of smartphones shipped. The premier transhipment hub was also the largest destination of Indian computer hardware and peripherals ($423 million), and the second largest destination for electronic components ($220 million), official data shows.
The UAE has faced direct impact of the conflict with key infrastructure coming under attack from Iranian missiles.
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