No need to press panic button: FM

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There is a world-wide panic caused due to Dubai World, the investment arm of the Middle-Eastern nation and real estate developer Nakheel. Dubai World has said it cannot repay, at least on time, debt to the tune of USD 60 billion. It's a move that has come as a rude shock to the entire Asia Pacific region, and sent tremors that are being felt across the globe.

However, Finance Minister Pranab Mukherjee is of the opinion that the exposure in Dubai is limited. "There is no need to press the panic button." However, he adds, "We will have to see how that affects Indians working there."

The government had yesterday said that the debt fiasco may not affect jobs of Indian residing in the state. "The Dubai crisis is unlikely to impact the employment, salaries and remittances of Indian expatriates staying in the region," Indian Finance Secretary Ashok Chawla said. "Remittances did not suffer even during the height of the larger global crisis [during 2008]."

The government has already taken measures to recover the economy, adds the FM.

The governor of Reserve Bank of India (RBI) had earlier said an assessment of the impact of Dubai's debt problems was needed before deciding on a response.

"We should not react to instant news like this. One lesson of the crisis is that we must study the developments, and I think we must measure the extent of the problem there and how it impacts India," Duvvri Subbarao told reporters in the southern Indian city of Hyderabad.