vIndianz.com (Dec. 01, 2009) — The impact of Dubai World being close to insolvency will perhaps be felt more in Kerala which accounts for an enormous chunk of Indian workers. While the migration of job losers has not started, it is tormenting point in time for the state’s economy.
Economists identify Kerala a money order economy as every third house in Kerala has a man operational in the Gulf. It’s this Malayalee vision to making it big in the Gulf that is in the line of fire after the markets tumbled in Dubai.
“It’s very much perturbing as lakhs will lose jobs and come back and then it could be a social dilemma,” said Kerala Finance Minister Thomas Issac.
Many workers who came home for Bakrid holidays dread the worst when they go back.
“We don’t know what the precise picture is as the government is keeping it undisclosed. There is no guarantee that our job will be there when we go back,” Fatharuddin, who works in Dubai, said in Cochin.
From amongst 50 lakh Indians who work in the Gulf, the Malayalee diaspora alone account for more than 20 lakh. They too bring in more than 25 per cent of the state’s GDP as remittance. So if the markets crash in the Gulf the straight impact will no qualm be on the economy of the state.
Not just that the future of two of Kerala’s multi-crore projects, the Smart City and the Vallarpadam Shipping Terminal is too doubtful as both have Dubai World as partners. But some others are still optimistic that sun will by no means set on Dubai and among them is Union Minister for Overseas Indian Affairs Vayalar Ravi.
“This is just a continuance of what struck the Wall Street. There is not something to panic. There will not be any exodus at this point in time. I am sure in two to three weeks time, things will normalise,” hoped Ravi.
Amidst all the panic and lack of confidence there is still hope since not many people have returned from the Gulf saying they have lost their jobs. But if the catastrophe deepens in Dubai World, this could very well be the case.
Your browser may not support display of this image.
Further Reading- Japan economy in short-term pain – BBC News
- Abu Dhabi gives Dubai $10 bn in surprise aid
- Dubai Duty Free: Third time’s the charm for Presvis – Daily Racing Form
- Dubai Duty Free: Third time’s the charm for Presvis – Daily Racing Form
- Stocks Rise Most This Year on Economy; Euro Gains – Bloomberg
- In blow to economy, hiring hits the skids – Houston Chronicle
- Karlsson wins Dubai World Championship in playoff – USA Today
- MIDEAST STOCKS-Markets track Saudi gains, but volatility remains – Reuters
- Dubai emergency: No unpleasant impact on Infy, TCS
- Maradona signs as coach of Dubai’s Al Wasl – Los Angeles Times
Stay updated! Follow us on twitter and subscribe to our feed via Feedburner.
No Comments