Dubai debt crisis could affect India's foreign trade: Survey
The Dubai debt crisis is likely to have "some impact" on India's exports and imports as the gulf region is the country's largest trade partner, the Economic Survey 2009-10 has said.delhi Updated: Feb 25, 2010 15:22 IST
The Dubai debt crisis is likely to have "some impact" on India's exports and imports as the gulf region is the country's largest trade partner, the Economic Survey 2009-10 has said.
"There could be some impact on India's exports and imports, keeping in view the significant share of the UAE in India's international trade," the survey said.
The financial crisis in Dubai erupted in November last year with the conglomerate Dubai World asking creditors for six months to repay $59 billion debts.
The United Arab Emirates (UAE) accounts for about 10 per cent of India's $490 billion total trade in 2008-09. While imports from the region amounted to $23.79 billion, exports were at $24.47 billion, according to official figures.
Besides, the Survey said, remittances would also be impacted by the Dubai crisis.
The Gulf accounts for nearly one-third of total remittances into the country and 40 per cent of the population in the region is comprised of Indians.
The total money remitted to India in 2008-09 was $46 billion.
"Indian expats comprise a large percentage of the total workforce in Dubai, the crisis may lead to salary cuts or job losses for Indian workers in the construction sector with consequent effect on remittances and NRI deposits," it said.
However, the Survey said, the impact of the crisis on India's realty sector would be "modest".