New Delhi, March 29 -- India could face pressure on remittances, the rupee and fiscal finances as the ongoing conflict in West Asia disrupts economic flows with the Gulf region, according to a report by SBI Funds Management.

The report titled "2026 Middle East Conflict and Its Implications" highlighted that apart from higher crude prices, India's external sector and fiscal balances could come under strain through multiple channels.

One key risk is a slowdown in remittances from the Gulf region, which accounts for a large share of funds sent home by overseas Indians.

"Remittance inflows are also likely to be affected, as about 38% of total inward remittances originate from the Middle East--half of which come from the UAE alone," the rep...