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India's Economic Exposure to West Asia

India's economic linkages to the West Asian/Gulf region are among its most significant globally, spanning energy, trade, remittances, and the diaspora.

Key details
  • Energy: ~50% of India's crude imports transit the Strait of Hormuz; Gulf countries supply ~46% of India's crude (Iraq, Saudi Arabia, UAE, Kuwait).
  • Remittances: India is the world's top remittance recipient; approximately $30–35 billion per year flows from the six GCC states alone — accounting for roughly 30–35% of India's total remittance income.
  • Trade: Total India-GCC trade was approximately $180 billion in 2023–24; the India-UAE CEPA (Comprehensive Economic Partnership Agreement, signed 2022) is India's first trade pact with a Gulf nation.
  • Indian diaspora: ~13–14 million NRIs in GCC states (UAE ~3.5 mn, Saudi Arabia ~2.5 mn, etc.).
  • Oil price impact on inflation: A sustained $10/barrel increase in Brent crude can add approximately 0.4–0.5 percentage points to India's CPI inflation.
In the news

Tracked since March 01, 2026 · last seen April 21, 2026 · updates as the daily brief publishes

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