Middle East War Strains India's Economy

The ongoing conflict in the Middle East is severely impacting India's economy, particularly its employment landscape. The war has led to a significant reduction in remittances from Indian migrant workers in the Gulf region, with approximately 1.1 million Indians returning home between February and April. This repatriation, coupled with a slowdown in economic growth in the Gulf, is creating a strained job market in India, especially in states like India — Kerala that heavily rely on these remittances. Additionally, the conflict has driven up fuel, logistics, and shipping costs, squeezing profits for Indian manufacturers like The King s Trust International in India — Kanpur and weakening demand for exports such as leather goods and glassware. This double blow is resulting in weak hiring, slow wage growth, and worsening job quality for the millions of young Indians entering the workforce annually, raising concerns about consumption and potential social unrest. Economists and industry leaders, including Taj Alam and K. E. Raghunathan, warn that the outlook remains bleak until stability returns to key trade routes like the Strait of Hormuz, further exacerbated by factors like AI and weak global trade.