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Political analyst Persis Khambatta of the Center for Strategic and International Studies in Washington said that now Khobragade had returned to India tensions may begin to ease between the US and India, but I fear that this episode has caused significant damage.Analysts said this suggested China is not on a verge of a fiscal crisis - the figure is less than half the debt burdens in Japan and Greece where public finances are strained - but warned the worlds second-biggest economy needed to urgently reduce debt if it wanted to safeguard growth and financial stability. .