The debt crisis in Greece may have a short-term impact on India's exports, depending on its spread across eurozone countries, Reserve Bank of India governor Duvvuri Subbarao said today.
The RBI governor also said the central bank has started slowly unwinding the stimulus measures to stem the economic slowdown that followed the global financial meltdown.
"We have begun policy exit, we have to traverse down that line," he said on the sidelines of central bank board meeting in Thiruvananthapuram.
RBI deputy governor Subir Gokarn, however, sounded a note of caution on monetary tightening in the light of the recent global events.
Gokarn pointed to global uncertainty, rising inflation and high government borrowing requirements, which, he said, will compete with private sector credit demand.
Normalising rates in the environment of global uncertainty won't be easy, he said.