Dubai crisis could affect India8217;s foreign trade

The financial crisis in Dubai erupted in November last year with the conglomerate Dubai World asking creditors for six months to repay USD 59 billion debts.

The United Arab Emirates UAE accounts for about 10 per cent of India8217;s USD 490 billion total trade in 2008-09. While imports from the region amounted to USD 23.79 billion,exports were at USD 24.47 billion,according to official figures.

Besides,the Survey said,remittances would also be impacted by the Dubai crisis.

The Gulf accounts for nearly one-third of total remittances into the country and 40 per cent of the population in the region is comprised of Indians.

The total money remitted to India in 2008-09 was USD 46 billion.

8220;Indian expats comprise a large percentage of the total workforce in Dubai,the crisis may lead to salary cuts or job losses for Indian workers in the construction sector with consequent effect on remittances and NRI deposits,8221; it said.

However,the Survey said,the impact of the crisis on India8217;s realty sector would be 8220;modest8221;.