US-Iran war: Return of 1m Indian citizens from Gulf countries severe blow to Indian economy
New Delhi: Lakhs of Indian citizens, working in Gulf countries, are facing severe uncertainty due to the US-Iran war.
According to Kashmir Media Service, about one million people have returned to India after quitting their jobs or due to pressure from the situation, which has dealt a severe blow to the Indian economy.
The closure of airspace in Gulf countries, disruption in maritime trade, decline in tourism and slowdown in construction projects have put the jobs of lakhs of Indian migrants at risk.
According to the Indian Ministry of External Affairs, about 984,000 Indian citizens have returned to India from the end of February to mid-April, including labourers, students and low-income people.
According to a report by German broadcaster Deutsche Welle, an Indian citizen, Mira Kurian, who has been living in Dubai for many years, said that she was laid off due to a sharp drop in hotel bookings after the Iran war. She said that cities like Dubai are completely dependent on tourism, trade and the activities of foreign workers, and when people stop coming, retail, logistics and other sectors are badly affected.
About nine million Indian citizens work in the Gulf countries, who send billions of dollars in foreign exchange to India every year from various sectors, including construction, hospitality, logistics, retail and services.
According to experts, if the war is prolonged, it will have a negative impact on consumption, housing, domestic debt and employment in India.
Former Indian Ambassador to Oman Anil Wadhwa has warned that a prolonged war will increase pressure on Gulf economies, which may lead to a large-scale exodus of Indian expatriates.
Lekha Chakraborty, an economist at the National Institute of Public Finance and Policy, has warned that the crisis could create a “labour shock” in India, which will lead to increased debt, partial unemployment and pressure on state finances.
Analysts say that the Iran war has not only shaken the Gulf region but has also laid the foundation for a new crisis for the Indian economy, the effects of which may become more noticeable in the coming months.
