The Gulf crisis is expected to impose on India an advance balance of payment impact of $2.8 billion (Rs.5,040 crore) in the 12 months ahead. The finance ministry has arrived on this tentative figure on the assumption that the crude price, on an average, will be $25 a barrel.
The Gulf crisis has affected India in many ways. It is expected to push up the oil import bill by $2.4 billion in one year, reduce flaws of remittances from non-resident Indians and hamper export of goods and services to the Middle East. The foreign exchange costs associated with repatriation and rehabilitation of Indian workers are also going to be substantial.