New Delhi, May 4 -- India's remittance inflows remain a key pillar supporting the country's external balance, but the ongoing West Asia conflict has raised concerns over employment conditions for Indian workers in the Gulf, highlighting the need for government support for returning migrants, as per a report by Morgan Stanley.

According to the report, India received around USD 120 billion in FY2024, which increased by 15 per cent to USD 138 billion in FY2025 as the global economy rebounded. These inflows have financed roughly 40-45 per cent of India's merchandise trade deficit in recent years, easing pressure on the balance of payments.

It stated, "policymakers may consider measures to support returning workers as they reintegrate into t...