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No noticeable impact of Dubai crisis on exports: Govt

business Updated: May 05, 2010 15:27 IST

PTI
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The government on Wednesday said 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 Jotiraditya Scindia informed the Rajya Sabha in a written reply.

Dubai World is an investment company that manages and supervises a portfolio of businesses and projects for the Dubai Government.

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.

Dubai World in November 2009 had said it would ask creditors for a "standstill" on paying back its $60 billion debt until at least May, 2010.

Markets across the world went into a tailspin after the report.

Scindia also said that the subsequent developments indicate that the impact on financial markets around the world have been contained, following an announcement by the United Arab Emirates (UAE) central bank that it would stand behind UAE banks and branches of foreign banks operating in the country.

The UAE -- Dubai, Abu Dhabi, Ajman, Fujairah, Ras al-Khaima, Sharjah and Umm al-Quwain -- was India's largest trading partner in 2008-09 with the two-way commerce estimated at USD 48.26 billion.