Will the Financial Crisis in Dubai affect Indian Economy?

“United Arab Emirates” / “UAE” comprise the following seven states:-
1. Abu Dhabi
2. Ajman
3. Dubai
4. Fujairah
5. Ras-al-Khaima
6. Sharjah
7. Um-al-QuwainIn the Emirate State of Dubai, there is a deep financial crisis with a huge $59-billion debt in the financial sector of Dubai World. The financial crisis in Dubai began last week, with conglomerate Dubai World asking for a six months delay on repaying its USD 59 billion debts.

Will the Financial Crisis in Dubai affect the Indian Economy?

Many civil projects/construction works in Dubai have been affected, due to the impact of the financial crisis. Many Indians employed in Dubai in the projects affected by the present situation may be affected.

According to Mr.Montek Singh Ahluwala, the Deputy Chairman of Planning Commission of India, the Dubai financial crisis will not impact India’s high economic growth as the country’s exposure to the debt-ridden Dubai World is limited. India recorded 7.9 per cent GDP growth rate in the second quarter, much more than anticipated by analysts.

Mr.Pranab Mukherjee, the Honble. Finance Minister of India has told that the full impact of the Dubai debt crisis is yet to be assessed and there is no need for panic.