The Dubai Crisis - No earth Shaking Impact on Indian economy - Pranab
FINANCE Minister Pranab Da feels that the Dubai debt crisis will not have "earth shaking" impact on the country's economy. "The full impact of the Dubai debt crisis is yet to be assessed, but there is no need to press the panic button', he said. "First of all, the amount is small and secondly, the exposure of our banking systems to the Dubai financial systems is limited." He, however, said that "some adverse effect" will be there initially on the stock markets, as was felt on Friday.
Earlier, the RBI Governor said that the impact of the crisis is yet to be assessed and he had sought reports from the Indian Banks on their exposure to Dubai World. When the reports of the crisis first emanated and the stock markets in Asia and the world over reacted negatively, the Commerce Minister was the first to jump the gun and state that Dubai World's debt crisis had no impact on the Indian economy.
The statement coming from the FM is contradictory. On the one hand, it is said that it does not have any earth shaking impact on our economy and on the other hand it is mentioned that the impact of the debt crisis in Dubai on Indian economy is yet to be assessed. What about the thousands of Indian workers in Dubai and their remittances to Kerala and other parts of the country? Kerala's FM expressed his concern over the fate of workers hailing from Kerala while the Minister for Overseas Affairs Vayalar Ravi says that there is nothing to worry.