SME Times News Bureau | 06 May, 2010
The government on Wednesday said that the recent Dubai World debt crisis had no significant impact on the Indian economy including, exports.
"...there is no noticeable negative impact of the Dubai debt crisis on Indian export and economy," Minister of State for Commerce and Industry Jyotiraditya Scindia informed the Rajya Sabha in a written reply.
Dubai World and Nakheel - two large government sponsored conglomerates - had shocked investors around the world in November last year when it asked for a freeze on payments owed on its $23.5 billion in debts. Although the scale of Dubai’s debts was comparatively modest at $80 billion (£48 billion), the uncertainty spooked the markets, with no one sure who its creditors are.
Later the Dubai government unveiled a rescue package for the struggling state owned company, a move that ended the crisis.
Scindia however, said the debt crisis had initial reaction in the domestic foreign currency and Indian stock markets.
"...the impact was insignificant and short-lived," Scindia said adding the primary capital market remained unaffected and there was no visible effect of the "Dubai news" on the money and government securities market.
