A Grexit will potentially trigger a global risk-off scenario primarily via the banking sector. For India, there is no direct banking sector exposure. However, India’s trade linkages with Greece are very small forming just 1.14% and 0.03% of India’s export and import basket respectively, says ASSOCHAM president
By Sai Nikesh D
A day after Greece’s voters rejected bailout proposals giving rise to likely possibility of ‘Grexit’ from Euro zone, the Government of India, on Monday, said it is closely monitoring the situation with a view that Grexit would have indirect impact on India.
While Finance Secretary Rajiv Mehrishi felt that there could be some reaction on the Fed rate hike, the Chief Economic Advisor Subramanian said the country is relatively well insulated from the Greece situation, but, ‘rupee might get affected to some extent due to flight of foreign investment’.