Why India will feel greatest impact of oil prices

India is set to feel the greatest impact of the continuing oil price scenario, as remittances slump to below the 2008 financial crisis.

The huge labour force working on Qatar’s mega infrastructure projects, readying the country to host the 2022 World Cup tournament as well as building the infrastructure due to be in place to fulfil the 2030 vision, has stoked the economy of their home countries.

Remittances from the GCC countries circulate billions of dollars, mostly to Asian economies like India and Pakistan, with approximately 23% of the world’s $400-billion remittances in 2013 coming from the GCC.

In Qatar, Indians comprise the largest expat community, numbering around 545,000, followed by Nepalis at 341,000 then Filipinos at 185,000, Bangladeshis with 137,000, Sri-Lankans comprising 100,000 and Pakistanis constituting 90,000 and other expatriates thereafter.

According to a report by The Hindu, an Indian national newspaper, in 2013 Indians staying abroad sent $70-billion worth of money back home. India uses this inflow to fund its current account deficit, so the revenue generation is vital to the economy, with the vast majority of this money coming from workers staying in Gulf countries.

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