Crisil Ratings has highlighted concerns regarding India's remittance flow due to the ongoing conflict in West Asia, which significantly impacts the Gulf Cooperation Council (GCC) countries that account for one-third of these inflows. India, being the largest recipient of remittances globally, received over $135 billion in FY25. The agency noted that a decline in the incomes of the Indian diaspora could adversely affect the country's current account deficit (CAD), particularly as the trade deficit is already under pressure. Additionally, India's export growth may be hindered by disruptions in global trade stemming from the conflict and slower global economic growth, although lower US tariffs may provide some relief. Crisil anticipates an 8-9% year-on-year increase in crude oil prices, which could further inflate India's import costs. The report also indicates that exports to West Asia, valued at $57 billion (13% of total goods exports), are facing challenges due to logistical issues and supply chain realignments.