Inside India newsletter: Energy, airlines and now over $50 billion in remittances to India at risk as Middle East conflict deepens

Monday - Friday, 11:00 - 12:00 SIN/HK | 0500 - 06:00 CET Inside India Inside India newsletter: Energy, airlines and now over $50 billion in remittances to India at risk as Middle East conflict deepens Published Wed, Mar 4 2026 11:06 PM EST Priyanka Salve WATCH LIVE Key Points India is the largest recipient of remittances globally and they account for nearly 3.5% of the GDP, higher than share of exports to the U.S. at 2%. The 9-million-strong Indian diaspora in the Gulf countries contributes nearly 38% to its total remittance inflows. A prolonged conflict in the Middle East will dent India's remittance flows enough to impact its economy. This report is from this week's "Inside India" newsletter which brings you timely, insightful news and market commentary on the emerging powerhouse. Subscribe here. The big story India can't seem to escape from the fallout of the escalating conflict in the Middle East. A significant share of the country's energy imports risk disruptions and its aviation sector is staring at higher costs due to airspace restrictions. But there's another multibillion-dollar worry that the country will need to contend with: remittances. India is the largest recipient of remittances globally and they account for nearly 3.5% of the GDP — that's higher than the share of exports to the U.S. at 2% of the economy. More than 9 million Indians reside in the Middle East and the money they send home plays a major role in shoring up India's finances, helping cut its current account deficit. NEW DELHI, INDIA - MARCH 3: Indian passangers with relaxed expressions at Terminal 3 after their special flight from Riyadh arrive back in India at Indira Gandhi International Airport on March 3, 2026 in New Delhi, India. Hindustan Times | Hindustan Times | Getty Images The Indian diaspora in the Gulf countries contributes nearly 38% to India's total remittance inflows, according to a Citi report. Based on the inflows of $135.4 billion in financial year 2025, the share of gulf ...