World Bank Group President Robert Zoellick recently said the Dubai debt crisis is manageable and would not affect India. Mr. Zoellick was in New Delhi for a meeting with policy makers, including RBI governor D Subbarao and Planning Commission deputy chairman Montek Singh Ahluwalia.
Addressing reporters after the meeting, he said, “I personally think that the Dubai financial problem would be contained and is manageable. I don’t think it to have an effect on Indian markets.”
Mr. Zoellick said that although India would not be hurt, the events in Dubai, due to the nervousness in financial markets, may prompt a second or a third look at investments in emerging markets. About the meeting, to understand how India is coming out of the global financial crisis, he said the policy makers feel the stimulus has helped the economy.
Speaking on the priorities of Indian policy makers, Mr. Zoellick said they are more interested in longer term investments like foreign direct investment rather than portfolio investment.Mr. Zoellick said that he is impressed at the rise in FDI in the country and added that Foreign Direct Investments can help India connect to the international economy.
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