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ShareNew Delhi: The government today said it was closely tracking the fallout of the current financial crisis in Dubai and directed its missions in the region to provide all necessary help the vulnerable section of the Indian workforce in the Gulf who may be affected by the crisis.
Overseas Indian affairs minister Vayalar Ravi, however, said government was not anticipating a surge of returnees to India from the region following the debt debacle as it was confident that the current crisis will blow over, because it was much less in magnitude compared to the worst period of the global financial meltdown.
"There is no need for undue panic. We are closely monitoring the situation. The crisis had actually started one year back," Ravi said.
He said preliminary reports have suggested that although the huge debt of a state-owned investment holding firm impacted markets world over, it may not result in huge job losses and return of the Indians from the region.
Global financial markets plunged on Thursday after Dubai World, the government investment firm burdened with USD59 billion liabilities, requested for deferment of the debt, also pulling down the stock markets in India.
The Asian markets were battered badly by the crisis with the shares of financial institutions and real estate sector tanking the most.
Asked whether the debt crisis would impact the remittances, Ravi dismissed such fears saying he was not anticipating lower remittances by the expatriates because of the current situation as it had increased during the worst period of economic recession.
"Against all the odds, the remittances had actually increased last year. I do not think remittances will be affected because of the debt repayment crisis."
Indians living in Gulf had remitted USD27 billion in 2007 to make India the top receiver of migrant remittances.
The United Arab Emirates, of which Dubai is one of the seven emirates, has nearly two million Indian population and is the country's largest export destination with shipments of about USD24 billion in fiscal 2008-'09.
As per estimates nearly 65% Indians residing in the country are blue-collar workers.
Secretary in the overseas Indian ministry K Mohandas also felt that there would not be a major impact on the job market in the region as result of the crisis in the Gulf city-state, but said that all the Indian missions have been asked to provide necessary help to Indians in distress.
"It is not that they are going to close down everything as result of the crisis. We are studying the impact of the crisis and have asked all our missions to provide necessary help to Indians in distress," he said.
