Remittances emerge as hidden risk for India if Gulf conflict disrupts worker incomes

India received a record $135.46 billion in remittances in FY25, financing about 47% of its merchandise trade deficit. Around 38% of this inflow—about $51 billion—comes from Gulf countries, where millions of Indian workers are employed. Analysts warn that a prolonged conflict in the region could hit worker incomes and slow remittances, putting pressure on India’s current account balance. Unlike during the pandemic, when flows from the US and UK offset Gulf weakness, a region-specific shock could strain both oil costs and remittance inflows.By CNBCTV18March 6, 2026, 4:29:23 PM IST (Updated)Continue ReadingFirst Published: Mar 6, 2026 4:29 PM IST

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