New Delhi, May 4 (BNP): India’s remittance inflows continue to remain strong despite ongoing geopolitical tensions in West Asia, although policymakers may need to focus on supporting the reintegration of returning workers into the domestic economy, according to a report by Morgan Stanley.
The report noted that inflows from overseas Indian workers have held up well even amid uncertainty in key Gulf economies, highlighting the resilience of remittance-driven household income in India.
However, it cautioned that if labour market conditions in the West Asia region weaken further, a portion of returning workers may require structured support to transition back into domestic employment opportunities.
Experts suggest that targeted skill development, job placement initiatives, and sector-specific absorption strategies could help ease reintegration challenges and maximise the productive use of returning labour.
Overall, while remittance flows remain stable for now, the report underscores the importance of proactive policy measures to manage potential labour market shifts and sustain income stability for affected households.
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