India-Saudi Arabia crude imports drop amid West Asia conflict disruptions

India's crude oil imports from Saudi Arabia saw a significant drop from $2.8 billion in April 2026 to $0.9 billion in June, before partially recovering to $1.4 billion in July. This fluctuation was attributed to disruptions in shipping routes due to the West Asia conflict, as detailed in the Rubix Country Insights: Saudi Arabia Update, September 2026, released by Rubix Data Sciences. Despite the challenges, Saudi Arabia remained India’s third-largest crude supplier by value during April, July 2026, with crude oil and natural gas accounting for 68% of India’s imports from the Kingdom in the first four months of FY2027.

The conflict has strained traditional shipping routes, prompting reliance on Saudi Arabia’s East-West pipeline, which bypasses the Strait of Hormuz. However, recent Houthi attacks on shipping in the Bab-el-Mandeb strait have added risks, leading India-bound cargoes from Yanbu to take a longer route via the Cape of Good Hope. This could result in freight rates for Saudi crude rising by up to 50%, according to the report.

Beyond energy, the trade relationship between India and Saudi Arabia is robust. Goods trade between the two nations was valued at $41.1 billion between April 2025 and March 2026, with Saudi Arabia committing $100 billion in investment across various sectors in India. The Kingdom’s real GDP growth is projected to slow to 1.7% in 2026 but is expected to rebound to 5.5% in 2027 if regional conditions stabilize.

Tushar Bhaskar, President of Rubix Data Sciences, emphasized the importance of risk assessment for Indian businesses trading with Saudi Arabia, highlighting the opportunities in infrastructure, manufacturing, logistics, and mining, as well as the exposure to freight costs and delivery timelines.