Remittances from Gulf countries slip on lower oil prices, job cuts 

New Delhi: Remittances from Gulf nations are likely to fall further in the days to come thanks to the lower oil prices and job cuts in the Middle East region. Remittances from the Gulf nations to India dropped by over two percent to $35.9 billion during financial year of 2015-16. The remittances from Gulf countries fell the most for the first time in the past six years, according to government officials.

The Union Ministry of Foreign Affairs has recently announced that measures were being taken up to bring back over 10,000 Indians stranded in Saudi Arabia and other Gulf countries. This will further impact remittances from the Gulf nations.

The latest data from World Bank reveal that Indians working abroad sent home about $69 billion, down 2.1% in 2015 from $70 billion in the previous year. India is the largest recipient of remittances in the world. India gets over half of its remittances from the Gulf countries.

The latest data from World Bank reveal that Indians working abroad sent home about $69 billion, down 2.1% in 2015 from $70 billion in the previous year. India is the largest recipient of remittances in the world. India gets over half of its remittances from the Gulf countries.

The United Arab Emirates (UAE) is the major source of remittances among the Gulf nations to India in 2015-16. The UAE accounts for 38.7 percent of the total remittances after Saudi Arabia with a 28.2 percent share.

Analysts said India could see a further fall in remittances from the Gulf if oil prices stay low for an extended period or witness unexpected decline. The steep drop in remittances may be a major problem for the Narendra Modi-led NDA government. Modi has been working on building relations with neighboring countries and Gulf nations to counter-terror and investment partnerships.