What on earth may be your anguishes regarding the ongoing Dubai crisis (that has started scaring both Indian realty investors and layers afresh), Government of India seems to be upbeat and it has hardly any fear. What is more, as per an Indian Minister, the risk of a multi-billion-dollar debt default by Dubai World, ranked among the largest state-run conglomerates in the region, will have minimal impact on the Indian economy.
Speaking on the same to the press in the national capital, Commerce Minister Anand Sharma said, “India is a very large economy. It’s a resilient economy. I don’t think some development in real estate in Dubai will have an impact on the Indian economy.” “As far as India is concerned, the housing, real estate sector and construction industry are all doing well. This is confirmed by the increasing demand for construction materials, cement and steel,” he added.
However, other dignitaries are not ready to share this standpoint of the revere Minister. On the contrary, Finance Secretary Ashok Chawla happens to be somewhat cautions and prefer to keep tabs on the entire development. “We will have to study what the issue is, what is the problem, what will be the possible implication if any for the Indian economy, the people and corporates,” he stated while speaking to the press and media in New Delhi. .
When he was asked whether the crisis will impact money flows into India, as the Gulf region forms in excess of half the total inward remittances worth over $25 billion annually from expatriate Indians, Chawla said: “It’s unlikely.”
Well, there is almost no doubt that the state-run Dubai World’s annunciation that it would need to restructure its debt, estimated at $59 billion, to forestall default and asking to creditors for a six-month deferment sent a shudder through the spine of global economy.
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