The Reserve Bank India today said it is examining the impact of the Dubai government’s decision to suspend debt payments by Dubai World, which led global stock markets to tumble amid fears of widespread default.
Governor D. Subbarao said he has asked his officials to study the impact and “if necessary make recommendations.”
“We shouldn’t 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,” said Subbarao, who attended an interactive session with the students of Indian School of Business here.
Meanwhile, N Chandrasekharan, CEO and MD, Tata Consultancy Services, said it did not have much exposure to Dubai markets and so impact if any is negligible.