New Delhi : The Dubai World debt crisis has no significant impact on the Indian economy and Indian exports, India’s Minister of State for Commerce and Industry, Jyotiraditya Scindia said on Wednesday.
In a written reply, the minister informed the Rajaya Sabha (Upper House of Indian Parliament) that there is no noticeable negative impact of the Dubai debt crisis on Indian export and economy.
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 USD 60 billion debt until at least May, 2010.
Dubai World was established under a decree ratified on 2 March 2006 by Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai. He also holds the majority stake in Dubai World.