No slowdown in India's remittances as West Asia crisis fans growth, inflation risks
India’s central bank has sought to allay concerns over the impact of the West Asia conflict on remittance inflows, even as it flagged broader risks to external demand, trade, and the current account stemming from global uncertainties and elevated energy prices.
Speaking after the Monetary Policy Committee (MPC) meeting, Reserve Bank of India Deputy Governor Poonam Gupta said remittances are unlikely to be significantly affected by the ongoing conflict, citing their diversified sources and long-term structural trends.
Also Read: Crude oil, remittances & exports: RBI spells out where the Iran war bites India
“On remittances, it comes from a rather diverse set of regions, the gulf regions' has come down over time, we have relatively low to medium skills people in the region who send these remittances past data shows that this moves only in one direction so we are not anticipating a dent to remittances from the Iran war,” Gupta said.
Her remarks came against the backdrop of the RBI’s broader assessment in its MPC statement, which highlighted that while remittance flows remain resilient in the near term, weaker global growth prospects could still pose risks by dampening external demand and potentially affecting inflows over time. “Weaker global growth prospects may dampen external demand and reduce remittance flows,” it said.
Also Read: RBI MPC Highlights: What Governor Sanjay Malhotra announced today
The RBI maintained that India’s external position remains manageable, supported by services exports and remittance inflows. These two components are expected to help keep the current account deficit within sustainable levels in 2025–26.
India’s inward remittance receipts have continued to show steady growth. In Q3 of 2025–26, remittances rose by 5.1% year-on-year to $37.8 billion. For the April–December period of the same fiscal year, net remittance receipts increased by 11.3%, indicating sustained inflows despite global headwinds.
Speaking after the Monetary Policy Committee (MPC) meeting, Reserve Bank of India Deputy Governor Poonam Gupta said remittances are unlikely to be significantly affected by the ongoing conflict, citing their diversified sources and long-term structural trends.
Also Read: Crude oil, remittances & exports: RBI spells out where the Iran war bites India
“On remittances, it comes from a rather diverse set of regions, the gulf regions' has come down over time, we have relatively low to medium skills people in the region who send these remittances past data shows that this moves only in one direction so we are not anticipating a dent to remittances from the Iran war,” Gupta said.
Her remarks came against the backdrop of the RBI’s broader assessment in its MPC statement, which highlighted that while remittance flows remain resilient in the near term, weaker global growth prospects could still pose risks by dampening external demand and potentially affecting inflows over time. “Weaker global growth prospects may dampen external demand and reduce remittance flows,” it said.
Also Read: RBI MPC Highlights: What Governor Sanjay Malhotra announced today
The RBI maintained that India’s external position remains manageable, supported by services exports and remittance inflows. These two components are expected to help keep the current account deficit within sustainable levels in 2025–26.
India’s inward remittance receipts have continued to show steady growth. In Q3 of 2025–26, remittances rose by 5.1% year-on-year to $37.8 billion. For the April–December period of the same fiscal year, net remittance receipts increased by 11.3%, indicating sustained inflows despite global headwinds.
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