Thursday 28th, March 2024
canara news

Govt says India insulated from Greece fallout; Re may get hit

Published On : 06 Jul 2015


New Delhi, Jul 6 (PTI) With Greeks' rejection of rescue package from creditors spooking markets, the government today asserted that India is well insulated from the crisis but rupee may be affected due to the outward flight of investment.

"This is a drama which is going to play out for sometime.

We are well protected in at least three ways. Our macro- economic situation is much more stable. We have (forex) reserves. We are an economy which is still a very attractive investment destination. So I think we are relatively well insulated," Chief Economic Advisor Arvind Subramanian told reporters here today.

Greeks had yesterday rejected a rescue package from its international creditors, throwing the future of the country's Eurozone membership in doubt.

"As for the crisis itself, it is going to going to be long and prolonged. Tomorrow is a big meeting of the German and the French head of the states. Let's see, it is up to Europe to respond," he said.

On the likely impact of the crisis on Indian economy, he said, "In these situations what mostly happens is there is flight to dollars, to a safe haven. Rupee might also be affected by that. But nothing gets unusual at all so far."

He said as the crisis plays out "financial markets are going to be volatile. Both the ECB and Fed will take this into account."

Finance Secretary Rajiv Mehrishi said government is closely monitoring the situation as India may be indirectly impacted.

"We will have to see how the euro moves now. We are closely monitoring the Greece situation. There could be some reaction on the Fed rate hike likely," he said here.

"Greece crisis might impact India indirectly," he added without elaborating.







More News

Sensex, Nifty fall 1% as crude oil prices surge
Sensex, Nifty fall 1% as crude oil prices surge
Aamir Khan calls 'Thugs of Hindostan' role one of his toughest
Aamir Khan calls 'Thugs of Hindostan' role one of his toughest
Fuel prices continue to fall as global crude rates ease
Fuel prices continue to fall as global crude rates ease

Write your Comments

Disclaimer: Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. canaranews.com will not be responsible for any defamatory message posted under this article.

Please note that under 66A of the IT Act, sending offensive or menacing messages through electronic communication service and sending false messages to cheat, mislead or deceive people or to cause annoyance to them is punishable. It is obligatory on CANARANEWS to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using canaranews will be purely at your own risk, and in no way will canaranews.com be held responsible.