India sees 34.6% drop in workers emigrating to Gulf, remittances fall

The number of Indian workers emigrating to the Gulf for work has dropped significantly in the last two years, it has emerged.

The decline has been significant between 2014 and 2016 possibly due to the slowing economies of countries part of the Gulf Cooperation Council (GCC), triggered by the weak oil prices, according to a Times of India report. 

The number of persons emigrating to the six Gulf countries - United Arab Emirates, Saudi Arabia, Kuwait, Qatar, Oman and Bahrain- from India was 775,845 in 2014 but fell to 507,296 in 2016, recording a 34.6 per cent drop. 

Saudi Arabia has showed the biggest decline, falling from 329,882 in 2014 to 165,356 in 2016, registering almost a 50 per cent drop. Apart from the slowing economy, the 'Saudisation policy' including Nitaqat, also played a big role in the decline.

"There has been a decline in the number of Indian workers emigrating to the Gulf countries for employment due to economic slowdown in GCC countries triggered by the weak oil prices, which has resulted in lack of demand for workers," Zee News quoted MEA as saying. "However, it has been reported by the Indian Missions that by undertaking different fiscal measures, these countries have been able to cope with the depressed oil and gas prices." 

The decline in the numbers has also impacted the overall remittances sent back to India. Though the breakup is not available, the overall remittances recorded in India's balance of payments statistics has fallen from $69,819 million in 2014-15 to $65,592 million in 2015-16.

"As per information provided by the Reserve Bank of India, the overall remittances/private transfers made by the Indians working abroad, all over the world, including Gulf countries, as recorded in India’s balance of payments statistics has fallen slightly from US$ 69,819 Million in 2014-15 to US$ 65,592 Million in 2015-16," the MEA added.

• Middle East
• emigration
• remittance