News

    NEW DELHI, NOV 29: FOLLOWING  concerns about Dubai’s  debt crisis, the Union government has reaffirmed that the economy will not be affected by the lastest tremor to hit the global economy.

      Allaying  fears of investors, the Commerce and Industry Minister, Mr Anand Sarma, said, “Indian  economy is strong and large and it won’t be affected by debt fears stoked by the government of Dubai.

          “Indian economy is resilient enough to stand firm,” he stressed.

            Global fears about an impending crisis was triggered by the Dubai’s government owned investment company, Dubai World, when it asked for a restructuring of its debt amounting to $ 59 billion.

              Dubai, which borrowed hugely, during a real estate boom, suffered heavily due to slump in real estate following the global recession.

           Following the news from Dubai, markets across the world have been behaveing jittery. The Bombay stovk Exchange’s (BSE) sensex crashed by over 500 points on November 27.

          Concerns were fuelled by the fact that the Middle East accounts for nearly 24 per cent of remittances that flows into the country.

           However, the Finance Ministry believed that the Dubai crisis might not impact remittances sent by Indian expatriates in the Gulf.

           “Remittances from expats didn’t suffer during the period  when the larger crisis was on. So  Whether this should have an impact in terms of employment,  in terms of salaries and, there fore, in terms of remittances is somewhat unlikely, ” the Finance Secretary, Mr Ashok Chawla, explained.