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

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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.