Allaying fears of an exodus of its migrant workforce and large-scale job losses, India's consulate here today said the Dubai debt crisis had no direct impact on the country and there was no need to be panic.
“We are confident that the government of Dubai and the UAE are fully capable of handling the short-term crisis faced by Dubai World,” India's Consul General Venu Rajamony said.
The UAE government-owned holding company, Dubai World, seeking extension of repayment of debt amounting to $59 billion till May next year has spooked worries that it may soon lead to large scale job losses in the region and an exodus of workforce back to India.
Rajamony said the decision on seeking extension of repayment was not going to lead to any sudden job losses of Indians or an exodus back home.
Million of workers from India are employed in realty and other sectors in Dubai and other West Asian cities and their families are dependent on remittances. Indians form 42.3 per cent of the population of Dubai.
India's Finance Minister Pranab Mukherjee also yesterday said the crisis will not have “earth shaking” impact on the economy. "The full impact of the Dubai debt crisis is yet to be assessed, but there is no need to press the panic button”. On the issue of the large number of Indians working in Dubai, he had sounded confident, “I don't think it will have much effect on Indian workers in that country,” he added.
Indian businessmen and analysts on the ground also said the world was overreacting to the crisis.