Dubai Financial Crisis will not impact India - Montek
According to the Planning Commission Deputy Chairman Montek Singh Ahluwalia's assessment, the Dubai financial crisis will not impact Indian economy. While talking to reporters on the possible impact, Mr. Ahluwalia, who was considered as the architect of the economic reforms in the country, said "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". However, if the crisis deepens beyond his assessment it may impact India too, he added.
Another reason Mr. Mr. Ahluwalia points out "India recorded 7.9% GDP growth rate in the second quarter, much more than anticipated by analysts or think tanks" . This would perhaps help India overcome the minor hiccup even if it comes along the way.
Pranab thinks we are safe
According to the Finance Minister Pranab Mukherjee, the quantum of impact on India is negligible as the amount is small, the exposure of our banking systems to the Dubai financial companies is limited. Talking to reporters on Saturday, the Finance Minister said, "the full impact of the Dubai debt crisis is yet to be assessed, but there is no need to press the panic button."
The financial crisis in Dubai began last week with UAE government owned conglomerate Dubai World asking for a six month delay on repaying its USD 59 billion debts, triggering the crisis.
Meanwhile, Nakheel Development, real estate subsidiary of Dubai World investment company, 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.
Another reason Mr. Mr. Ahluwalia points out "India recorded 7.9% GDP growth rate in the second quarter, much more than anticipated by analysts or think tanks" . This would perhaps help India overcome the minor hiccup even if it comes along the way.
Pranab thinks we are safe
According to the Finance Minister Pranab Mukherjee, the quantum of impact on India is negligible as the amount is small, the exposure of our banking systems to the Dubai financial companies is limited. Talking to reporters on Saturday, the Finance Minister said, "the full impact of the Dubai debt crisis is yet to be assessed, but there is no need to press the panic button."
The financial crisis in Dubai began last week with UAE government owned conglomerate Dubai World asking for a six month delay on repaying its USD 59 billion debts, triggering the crisis.
Meanwhile, Nakheel Development, real estate subsidiary of Dubai World investment company, 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.
- Courtesy : HT
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