Using your phone's internet browser
go to:  qna.rediff.com
Click and drag this link to
the Home icon in your browser.
Q.

What is the impact of dubai financial collapse on indian economy?

Tags: sports, education, indian economy
Asked by hanumantha shetty, 29 Nov '09 12:27 pm
  Invite a friend  |  
  Save  |  
 Earn 10 points for answering
Answer this question  Earn 10 points for answering    
4000 characters remaining  
  
    
Keep me signed inNew User? Sign up

Answers (7)

1.

General feeling of the Indian government and the industry here is that this will not impact India in a big way. Therefore we can only be optimistic that the fall out of this on India would be minimal Let us wait and watch the situation.
Answered by Good Citizen, 29 Nov '09 01:44 pm

 
  
Report abuse
Useful
 (0)
Not Useful
 (0)
Your vote on this answer has already been received
2.

Govt.stake might be less but impact of indian exodus create huge problem in the field of employment.Where is employment scope here?Banks have investment there they will be hit marginally as Bank authority says,but in real it is still to be estimated.
Answered by Ashish, 30 Nov '09 10:15 pm

 
  
Report abuse
Useful
 (0)
Not Useful
 (0)
Your vote on this answer has already been received
3.

Job loss; less in flow of gold into the country .repayment difficultires of dubai
based nri (housing /car/farm loans)
Answered by AANEWS AGENCY, 30 Nov '09 08:39 pm

 
  
Report abuse
Useful
 (0)
Not Useful
 (0)
Your vote on this answer has already been received
4.

Only a small impact on selected companies
Answered by dhanendra kumar jain, 30 Nov '09 04:31 pm

 
  
Report abuse
Useful
 (0)
Not Useful
 (0)
Your vote on this answer has already been received
5.

Not really, the Dubai collapse was due to WAAAAAAAAAAAAAAAAY too much speculation. U had building projects during "good times" where all the 100 floors get booked w/ full cash advance even before the construction of the said project has started. Then, when bad times suddenly strike and when the parties who made their booking want their cash back, there is confusion all around. Whereas if u

The Dubai collapse and the global financial crisis is due to the simple fact that people started playing w/ money they didn't have.

It is a different story when u build a building fully and then offer it for sales. That meant u poured in your money into the building complex. U completed it. Sold it. And got a profit. But then, if u compile a sexy looking presentation, get a bunch of cash advance, and invest it in wall street for a while, and then start ur project against ur wall street holdings, when recession strikes, u lose everything because ur project values were backed by speculation.

...more
Answered by A Moin, 30 Nov '09 03:13 pm

 
  
Report abuse
Useful
 (0)
Not Useful
 (0)
Your vote on this answer has already been received
6.

Dozens of Indian companies have investment and business exposure in Dubai. These include Nagarjuna Constructions, Larsen & Tubro, Punj Lloyd, Bank of Baroda, Voltas, Omaxe, Aban Offshore, Spicejet and Indiabulls Real Estate. But most of the companies have clarified that their exposure is marginal and they are in a position to survive the crisis. Having asked its officers to study the impact and make necessary recommendations, a cautious Reserve Bank of India said that the development and the extent of the problem needed to be studied. RBI Governor D Subbarao said: We should not react to instant news like this. One lesson that we learnt from the (global financial) crisis is that we must study the developments and measure the extent of the problem and hence study the impact on India.Officials are trying to understand the impact of the Dubai crisis on remittance from UAE. Remittances from expats didnt suffer during the period when the larger crisis was on. So whether this should have an i ...more
Answered by venkatesaldevarajan, 29 Nov '09 12:36 pm

 
  
Report abuse
Useful
 (0)
Not Useful
 (0)
Your vote on this answer has already been received
7.

It is like silence before strom
Answered by Anand Agarwal, 29 Nov '09 12:35 pm

 
  
Report abuse
Useful
 (0)
Not Useful
 (0)
Your vote on this answer has already been received

Ask a Question

Get answers from the community

600 characters remaining

Related Answer

Q.
A

Well..real estate companies have had a really strong run in this uptrend..among the large caps..indiabulls realty looks the best bet.with surplus cash..more

Answered by hitesh garg