Inside India newsletter: Energy, airlines and now over $50 billion in remittances to India at risk as Middle East conflict deepens
By Priyanka Salve
Published on March 5, 2026.
India is facing significant financial impacts due to the Middle East conflict, including disruptions in energy imports and aviation costs due to airspace restrictions. The country is the world's largest recipient of remittances, accounting for nearly 3.5% of the GDP, higher than exports to the U.S. The Indian diaspora in the Gulf countries contributes nearly 38% to India's total remittance inflows, contributing nearly one-fifth of the flows. Experts suggest that only a prolonged conflict in the Middle Eastern will significantly impact India's remittance flows enough to impact the economy. The conflict is also affecting the construction and services sector, particularly affecting Indian migrant workers. The U.K. and U.N. are also threatening to escalate their offensive against Iran. Chances of the hostilities lasting longer have increased as both sides intensify their attacks.
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