India is one of those countries that has stood strong during Greece crisis and below are some of the reasons for the same :
1) India does not have a large exposure to Greece as far as direct trade is concerned, said Commerce Secretary Rajeev Kher.
2)Minister of State of Finance Jayant Sinha on Wednesday said India has emerged as a beacon of stability in an increasingly volatile world, pointing to the country's improved macro-economic fundamentals as compared to a few years ago.
3) Former RBI governor Bimal Jalan too said he does not see the Greece crisis impacting the Indian economy much. India is not a very high trade dependent country and India's GDP growth rate could be impacted by "0.2 per cent or something" if the crisis escalates, he said.
4)Europe is India's largest trading partner with $129 billion of merchandise commerce in 2014-15. Of this, the European Union accounted for $97 billion with the UK, Germany, France and Italy being the leading partners.
5)Greece has a small economy (GDP of around $250 billion) comprising less than 2 per cent of euro area GDP. And compared to the 2011-12 European debt crisis, the rest of the euro area is in a much stronger economic position, Nomura said.
Analysts say that Indian markets have shown a strong resilience to the Greek crisis as compared to a bigger selloff in other markets. They say that 8100 levels offer a strong support for Nifty. Gaurang Shah, AVP at Geojit BNP Paribas Financial Services, told NDTV that the recent selloff in Chinese stock markets could trigger some safe-haven buying in Indian equities as India remains less exposed to Greece crisis as compared to some other Asian countries.
Quote courtesy - NDTV profit
