According to the World Trade Organization (WTO), global merchandise trade grew by 1.9% in Q1 2026 despite West Asian turmoil, largely buffered by a surge in demand for artificial intelligence (AI) hardware and electronic components. However, Middle Eastern crude oil shipments dropped significantly, raising concerns over potential Q2 contractions due to transit risks through the Strait of Hormuz. Under the newly implemented UK-India Comprehensive Economic and Trade Agreement (CETA), Bengaluru-based importers received the first tariff-free shipment of GI-tagged Scottish salmon, replacing the previous 33% duty.
To address Middle Eastern shipping bottlenecks, India restructured its cooking gas sourcing, with the United States supplying 73% of India’s 1.15 million tonnes of LPG imports in July, up from 39.6% earlier in the year. Middle Eastern LPG contributions fell from 88.1% to under 29%, aligning with India’s strategy to diversify energy procurement. Concurrently, implementation preparations for the India-New Zealand Free Trade Agreement aim to expand bilateral commerce beyond NZ$10 billion across education, tourism, finance, and agriculture.