Due to increasing tension in the Gulf region and Israel-Iran war, there is a possibility of deep impact on India’s economy and millions of Indians living there. According to latest reports, the risk on remittances i.e. foreign currency worth about $50 billion coming to India from Gulf countries has increased. The Central Government and the Ministry of External Affairs are continuously monitoring the situation and the safety of citizens is being given priority.
ℹ: Big news for those going to UAE and Kuwait, rules of attestation changed in India, now QR code will work.
Latest updates on security and evacuation of Indians living in Gulf countries
Concern has increased regarding the safety of about 90 lakh to 1 crore Indians living in Gulf countries. According to External Affairs Ministry spokesperson Randhir Jaiswal, India cannot remain unaware of these circumstances and about 52,000 Indians have been brought back between March 1 and March 7, 2026. External Affairs Minister S Jaishankar also said in the Rajya Sabha that the situation has worsened and the safety of Indians is our biggest priority.
Indian embassies are on alert following reports of attacks near Tehran and Riyadh. Airlines like IndiGo have started limited flights only for evacuees. 24/7 helpline numbers have been issued in Tehran, Tel Aviv, Riyadh and Dubai.
What will be the impact of war on remittances and trade?
About 38 to 40 percent of the total remittances received by India come from GCC countries alone. According to the report of State Bank of India, a prolonged war will weaken the economy of the Gulf countries, which will lead to a reduction in the money coming to India. Apart from this, pressure is also increasing due to oil prices reaching $100 per barrel.
Topics Important Data Total Remittances (FY25) $138 billion Amount at Risk $50-52 billion Brent Crude $89-$100 per barrel
The Commerce Department has created a support desk to help exporters due to the closure of the Strait of Hormuz. Experts believe that it will have the biggest impact on families from states like Kerala, Uttar Pradesh and Bihar because a large number of people from there go to the Gulf for work. Petroleum Minister Hardeep Singh Puri has said that India has enough reserves and there is no need to panic at the moment.