New Delhi, May 10 (Inditop.com) India Monday said it is keeping a close watch on the European debt crisis, though it has not seen any significant adverse impact on its economy.
“We are keeping a very close watch on the situation (the European crisis). So far, there is no adverse impact of significant nature,” Commerce Minister Anand Sharma said here.
“I don’t foresee in the immediate context any major impact which would create an alarming situation here,” Sharma told reporters on the sidelines of a conference organised by the Tea Research Association of India.
A crisis of confidence in Europe has been triggered by a potential debt default by Greece. Investors worldwide are concerned that Greece’s sovereign debt crisis could spread through the Euro zone and affect world economic recovery.
To stabilise world financial markets and curb speculative attacks on the euro, the European Union (EU) finance ministers have pledged an emergency loan package with IMF support touching $1 trillion.
“We hope the crisis is resolved. The EU has been making its own efforts and initiatives to control the situation and the IMF too is helping out in this,” said Sharma.
However, the crisis has left the central bank a tad concerned. In Kolkata, Reserve Bank of India Deputy Governor Subir Gokarn said emerging markets cannot be immune to the crisis and there could be capital outflows from India in the near term.
“There will be impact on the emerging markets. There could be some capital outflow. Though India is in a stronger position among the emerging markets, we cannot rule out net capital outflow,” Gokarn said.
