Greece's
bailout program ends on June 30, when the country is unlikely to make a 1.6
billion euro ($1.8 billion) repayment to the International Monetary Fund.Greek
PM Alexis Tsipras has called the referendum over the weekend and shut down
banks for a week and imposed a daily ATM withdrawal limit of 60 euros.Tsipras's
moves have spooked world markets, including India.
Here is
how India may be affected due to the Greek crisis:
India may suffer capital outflows
Finance secretary Rajiv Mehrishi said the economic crisis in Greece may trigger capital outflows from India and the government is consulting the RBI to deal with the situation.
India's software and engineering exports may take a hit
With Greece witnessing a full-blown economic crisis, India's software and engineering exports may take a hit, industry and government officials warned on Monday. Engineering exporters' body EEPC India said the economic crisis in Greece will impact engineering exports from India as European Union is the largest destination for such shipments. The industry body said it sees indirect impact from the UK, Italy, Turkey and France.
India may suffer capital outflows
Finance secretary Rajiv Mehrishi said the economic crisis in Greece may trigger capital outflows from India and the government is consulting the RBI to deal with the situation.
India's software and engineering exports may take a hit
With Greece witnessing a full-blown economic crisis, India's software and engineering exports may take a hit, industry and government officials warned on Monday. Engineering exporters' body EEPC India said the economic crisis in Greece will impact engineering exports from India as European Union is the largest destination for such shipments. The industry body said it sees indirect impact from the UK, Italy, Turkey and France.
Rupee might depreciate
Economists say there could be some temporary volatility in the financial market and if a Greece exit happens, then rupee might depreciate.
Sharp volatility in stock markets
India's stock markets fell as much as 2.2% on Monday on Greece worries. The BSE Sensex and Nifty closed at their lowest in nearly two-and-a-half weeks. However, on Tuesday, Sensex has shed losses and is trading higher.
Better prepared this time
Indian authorities say they are drawing up plans to meet any adverse impact on the economy from the crisis. However, economists say authorities are better prepared this time to face any adverse fallout as the situation in Greece has been volatile for some time. Unlike the earlier global financial crisis, authorities have been preparing to deal with any adverse fallout of a Greece exit, but they say there may be short-term volatility.
Economists say there could be some temporary volatility in the financial market and if a Greece exit happens, then rupee might depreciate.
Sharp volatility in stock markets
India's stock markets fell as much as 2.2% on Monday on Greece worries. The BSE Sensex and Nifty closed at their lowest in nearly two-and-a-half weeks. However, on Tuesday, Sensex has shed losses and is trading higher.
Better prepared this time
Indian authorities say they are drawing up plans to meet any adverse impact on the economy from the crisis. However, economists say authorities are better prepared this time to face any adverse fallout as the situation in Greece has been volatile for some time. Unlike the earlier global financial crisis, authorities have been preparing to deal with any adverse fallout of a Greece exit, but they say there may be short-term volatility.
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