Press Trust of India / New Delhi Nov 30, 2009, 17:25 IST
The Dubai financial crisis will not impact India's high economic growth as the country's exposure to the debt-ridden Dubai World is limited, said Planning Commission Deputy Chairman Montek Singh Ahluwalia.
"My understanding is that India's exposure to Dubai World is very low... I don't think that India's high growth would be affected by Dubai crisis," he told reporters here.
However, in case the impact of the crisis is big, Ahlwualia added, "it may have some impact on us."
India recorded 7.9 per cent GDP growth rate in the second quarter, much more than anticipated by analysts or think tanks.
The financial crisis in Dubai began last week with conglomerate Dubai World asking for a six month delay on repaying its $59 billion debts.
Talking to reporters on Saturday, Finance Minister Pranab Mukherjee said, "The full impact of the Dubai debt crisis is yet to be assessed, but there is no need to press the panic button."
Mukherjee had further said, "First of all, the amount is small and secondly, the exposure of our banking systems to the Dubai financial systems is limited."
Meanwhile, Nakheel Development, real estate arm of Dubai World, requested for suspension of three of its listed Sukuk or Islamic bonds (Nakheel Development Limited, Nakheel Development 2 Limited, Nakheel Development 3 Limited) on Nasdaq Dubai.
Dubai melt down will certainly have impact on our economic growth rate, export to UAE, remittance from UAE,air line traffic, etc, and this will also increase the rate of unemployment in our Country.
It is apprehended that a large numer of Indian Construction Workers will lose their jobs and it is uncertain whether they will get their arear Salary and reptriation benefits. Govt of India must step in immediately, without any excuse, to ensure that Indian Workers get their dues before they are packed off. Indeed, the efficiency of our Govt will be judged from the manner the Govt handles the issue of Workers' legal dues. A good number of Indian Construction Companies in the UAE may also lose their project contracts without proper compensation. This will also affect our economy.
Content Guide
The Dubai financial crisis will not impact India's high economic growth as the country's exposure to the debt-ridden Dubai World is limited, said Planning Commission Deputy Chairman Montek Singh Ahluwalia.
