Amid a pall of gloom over millions of families across India-- dependent on regular remittances from the Middle East-- after Dubai World's repayment crisis, businessmen and analysts on the ground find the world was over-reacting and worries perhaps unfounded.

"It may have been headline material but it was 48 hours too late," says a Dubai World official on condition of anonymity. According to him, for all practical purposes this was debt payment delay and not a default as it is being made out to be.

India's Finance Minister Pranab Mukherjee also yesterday asserted that there is no need to press panic button. "The full impact of the Dubai debt crisis is yet to be assessed, but there is no need to press the panic button". Buttressing his point he had said "first of all, the amount is small and secondly, the exposure of our banking systems to the Dubai financial systems is limited."

State-owned investment holding company Dubai World has sought extension at least till May 2010 to repay its debt amounting to $59 billion, spooking investor confidence across the world.

Stock exchanges world over, including the Bombay Stock Exchange, tumbled following this latest unraveling in the financial world. It has raised serious concerns in India where millions of families across the country are dependent on remittance from the Middle East.

There is intense fears of job losses particularly in construction sector in Dubai which employs numerous workers from India.