How U.S.-Israel attack on Iran could impact millions of Indian migrant workers

Explore how U.S.-Israel actions against Iran could disrupt livelihoods and remittances for millions of Indian migrant workers in the Gulf.

As tensions escalate following the United States-Israel military strikes on Iran, raising concerns about oil supplies and shipping through the Strait of Hormuz, evacuation and rescue efforts for Indians stranded across West Asia have begun. Indian airlines, including IndiGo, Air India and Air India Express, are operating over 12 special flights to cities in Saudi Arabia and the United Arab Emirates (UAE) to bring back passengers whose travel plans have been disrupted by the conflict.

But for India, the consequences of a prolonged conflict in West Asia may go beyond immediate evacuations or energy markets. The region hosts millions of Indian workers, and instability could affect the livelihoods of migrant labourers and remittances they send home each year.

Emigration clearances, mandatory for Indians travelling to the Gulf and other designated countries for work,  offer a reliable snapshot of the scale of India’s migrant labour presence in West Asia. While they track new clearances rather than the total number of workers already abroad, they serve as a useful proxy for labour flows into the region.

Between 2021 and 2025, more than 17 lakh Indians received such clearances for Gulf-bound work. Saudi Arabia alone accounted for 41% of clearances, making it the largest destination among the Gulf countries for Indian migrant workers during the period. The UAE came in second with 24% of the clearances,  standing out as the largest destination for blue-collar work, in areas such as construction, healthcare, hospitality, and tourism. Kuwait was third with 12% of the clearances.

Remittances from Indians working abroad are one of the country’s crucial sources of foreign exchange. Data from the Reserve Bank of India shows that the UAE maintained its position as the second largest source of India’s inward remittances after the United States, with its share increasing from 18% in 2020-21 to 19.2% in 2023-24. Saudi Arabia contributed 6.7%, Kuwait 3.9%, Qatar 4.1%, and Oman 2.5%.

States such as Maharashtra, Kerala and Tamil Nadu account for a large share of remittance inflows from all countries into India. In 2023-24, Maharashtra received 20.5% of total remittances, followed by Kerala at 19.7% and Tamil Nadu at 10.4%. Telangana (8.1%) and Karnataka (7.7%) also feature among the major recipients.