In charts: Why West Asia is important for India beyond trade

Stability in West Asia matters to India as many Indians study, work, and send money back home from the region. The escalation of the conflict, leading to the temporary airspace closure in four nations—the UAE, Qatar, Bahrain, and Kuwait—on Monday, makes the situation tense for India and Indians in the region.

The evacuation of over 2,000 Indian nationals from Iran and Israel under “Operation Sindhu" has reinforced the gravity of India's stake in the stability of the region. Several of these were students.

While the share of overseas Indians in Israel (0.30%) and Iran (0.03%) is minuscule, West Asian nations together account for over 25% of the 35 million in total, data from the ministry of external affairs showed. There is no formal definition of West Asia (or Middle East as popular in Western countries), but it broadly covers Bahrain, Iran, Iraq, Israel, Palestine, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, Turkey, the UAE and Yemen.

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The region has also seen interest among a few Indians looking to pursue education abroad. In 2024, nearly 11,000 students were in West Asian nations for studies, data shared by the education ministry in Lok Sabha showed. Though this constitutes only about 1.3% of 760,000 students studying abroad, the UAE, Iran and Israel are among the top choices.

Deep ties

Millions of Indians, primarily employed in blue-collar jobs, in West Asian countries, fuel the economic engine in the region as well as in India. The largest number in the region is in the UAE, hosting 3.6 million Indians. This is followed by Saudi Arabia (2.5 million). Smaller yet significant Indian communities exist in Kuwait (1 million) and Qatar (0.8 million), and Oman (0.7 million). 

In recent years, the region, particularly the UAE, has also become a magnet for high-skilled Indian professionals due to tax-free salaries, zero capital gains tax, and a Golden Visa program that offers residency of up to 10 years to people in select fields. In terms of studies, the UAE is popular as several international universities have campuses and colleges in the country. Iran, the second favourite destination, is generally preferred for medical studies and engineering.

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The conflict between Israel and Iran could destabilise the region upon escalation. This can impact many Indians residing in the region or disrupt plans of those who are planning to go there. The experience with the Russia-Ukraine war offers some context: the number of Indians pursuing studies in Ukraine slumped to 252 in 2024 from around 2,200 in 2022.

Monetary might

As one in four overseas Indians resides in West Asian countries, India gains significantly from inward remittances. India’s remittances touched $118 billion in 2023-24, according to data from the Reserve Bank of India. These remittances help in financing a part of India’s trade deficit and offer a cushion during the period of external shocks.

Also Read: High-value, white-collar inflows have led a shift in India’s inward remittances

While the biggest share came from the US, the West Asian nations together accounted for a 38% share, or $45 billion. The UAE contributed 19.2%, followed by Saudi Arabia (6.7%) and Kuwait (3.9%). The two nations locked in the conflict, Israel and Iran, are not among the major sources of inward remittances for India. 

However, if the conflict spreads—as witnessed on Monday after Iran targeted the US army bases in Qatar and Iraq—it could lead to disruptions in other West Asian nations where India does have deep human resource and monetary connections.