Chandigarh:
The risk of a multi-billion-dollar debt default by Dubai World, which is ranked among the largest state-run conglomerates in the region, will have little impact on the Indian economy.
This assurance came from Finance Minister Pranab Mukherjee who said there will not be any effect of the Dubai debacle on India because Indian realtors in Dubai are not the key players.
"There is no need to press panic button. First the amount involved is small; secondly the exposure to Dubai financial system of Indian banking system from viewpoint of direct foreign investment or FII ...exposure is limited. Therefore do not to press the panic button. Some affects will be there. Initially it was felt in the stock market but there after it has recovered," he said.
But despite the government's assurance, the real estate industry in India is worried.