India safe from euro zone crisis, agree government, experts

While the euro zone crisis triggered by Greece may have agitated large parts of the world, it is unlikely to have a major impact on Asian economies apart from Japan – least of all India, feels the government. The impact on India would not only be minimal, but might even prove helpful in the short run, according to finance secretary Ashok Chawla.

''As far as India is concerned, the impact on us will be minimal. In fact, in the short run - that is, purely in the short run - it might help us in terms of India being regarded as a relatively safe haven,'' Chawla said on Monday on the sidelines of an industry association function.

''We were immune when there was a much larger international financial crisis. The Greece crisis is much smaller in scale and magnitude to what the world has seen in the last one-and-a-half years,'' Chawla added.

Other officials echoed these views. ''So far there has not been any adverse impact, but the situation is being carefully monitored,'' commerce and industry minister Anand Sharma told reporters on the sidelines of a Tea Research Association function in Shimla.

Separately, Reserve Bank of India deputy governor Subir Gokarn said the Greek debt crisis could trigger short-term vulnerability in the Indian markets, though its long-term impact might not be severe.

However, there could be capital outflows from emerging markets, was his view. ''Though India is in a stronger position among the emerging markets, we cannot rule out net capital outflows,'' Gokarn said in Kolkata on the sidelines of a banking seminar.