Is muscle building exercise recommended for Diabetics

I am presuming that by muscle building, you mean weight training. If the answer is yes, then it is definitely a good idea. Muscle breakdown and repairs help absorb carbs better, in effect improving usage of blood sugar and also improved response to insulin. In case one is over weight, it also helps lose weight.

Thanks Jayesh.
Sudhir, always start with smaller weights and increase gradually over time