Greece is experiencing Economic Crisis, and it could default on its debts today. This economic crisis in Greece may hit the software, and engineering exports in India and the country can experience large capital outflows because of a weaker euro.
The situation of Greece has crushed the share market globally yesterday as well as in India. The companies that are directly doing business with Eurozone market were smashed badly because of the weaker euro against other currencies.
This condition has provoked the Prime Minister Alexis Tsipras to announce the shutdown of banks for a week. This news has dropped the Sensex by more than 600 points on Monday and finally made it settled at 27,645.15. Now the value of the euro against the Indian rupee is Rs 70.97, from Rs 71.25.
In the currency market, the euro turned weak against the Indian rupee to Rs 70.97, from Rs 71.25 in the last trading session, even as the US dollar and British Pound gained.
Finance Secretary Rajiv Mehrishi said that the government is consulting the RBI to deal with the situation that may trigger due to Greece crisis. "Greece crisis does not have any effect directly on India. Interest rate may firm up in Europe. In case of firming up of interest rate in Europe, there can be an outflow of capital from India," Mr Mehrishi told reporters.
The largest private sector lender ICICI Bank said that it doesn’t see any impact as it has no exposure to Europe. "We have no exposure in Europe and not made any finances to the companies there. So the question of Greek debt crisis impacting the bank does not arise," ICICI’s CEO Chanda Kochhar said.