No affect on Indian economy, only remittances will be affected: Pranab
“Let us not press the panic button. Let us wait and watch,” said Union Finance Minister Pranab Mukherjee on the Dubai World’s crisis. On the flow of remittances, Mukherjee admitted that the current crisis might fuel joblessness and flow of foreign exchange. Dubai default | Should India worry? | Govt optimisticindia Updated: Nov 28, 2009 19:49 IST
“Let us not press the panic button. Let us wait and watch,” said Union Finance Minister Pranab Mukherjee on the Dubai World’s crisis.
Dubai World, the government-owned company, is reeling under liabilities of $59 billion and has sought to delay repayment of its debt obligations.
Mukherjee added, “ The amount involved is so small as compared to the size of the world economy that it might not have any major impact.” Adding further he said, “India also is not going to face any impact in terms of Foreign Institutional Investors (FIIs), Foreign Direct Investment (FDI) and even in exports.”
It is important to mention here that Indian exports to United Arab of Emirates worth around with shipments of about $24 billion in fiscal 2008-09. The Reserve Bank of India will also ask banks to furnish details regarding their exposure in Dubai World.
On the flow of remittances, Mukherjee admitted that the current crisis might fuel joblessness and flow of foreign exchange. He added, “ 42.3 per cent of the total population in UAE are Indians.”
On India’s stand on Climate Warming, he said, “The developing countries need green technologies at affordable prices. The funds required for this should come as additionally from the developed countries as decided earlier.” On China’s stand on the issue of reducing emissions, he said, “… Both India and China has agreed on same option but different shell approach.”
On unabated farmers’ suicide, he said, “ I have made a task force to look into the money borrowed from the cooperatives. It is a pilot project. Lets us wait for its outcome. Banks had waived off the debt, but we have to see the money borrowed from the private money lenders.”
On Omar Sheikh posing as him and calling Pakistan President Asif Ali Zardari, as per the Dawn report, he replied, “ It could not be possible. As far as security drill is concerned, when someone makes a telephone call to ministers, his number is taken and then a call is made at the number.”