Indian Government Officials said that “we are keeping a close watch on the European debt crisis, though it has not seen any significant adverse impact on its economy”.
Indian Union Commerce Minister Anand Sharma said “We are keeping a very close watch on the situation (the European crisis). So far, there is no adverse impact of significant nature,”
Indian Union Commerce Minister Anand Sharma told reporters on the sidelines of a conference organised by the Tea Research Association of India.”I don’t foresee in the immediate context any major impact which would create an alarming situation here,”
A financial debt crisis of confidence in Europe has been triggered by a potential debt default by Greece. Investors internationally are concerned that Greece’s sovereign financial debt crisis could spread through the Euro zone and can affect world economic recovery.
To stabilize world financial markets and curb tentative attacks on the euro, the European Union (EU) finance ministers have pledged an emergency loan package with IMF support touching $1 trillion.
Indian Union Commerce Minister Anand Sharma “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”
On the other hand the European Debt Crisis crisis has left the central bank a tad concerned.
Reserve Bank of India Deputy Governor Subir Gokarn said In Kolkata “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,” Reserve Bank of India Deputy Governor Subir Gokarn added.
The interference, which also involves the central banks of England, Switzerland, Canada and Japan, is part of a colossal package intended to suppress the restive credit markets with a show of force and resolution that American policymakers had quietly believed was wanting.
The financial rescue package has two other fundamentals: about $950 billion in loan guarantees from the European Union, and a decision by the European Central Bank to get involved in the bond markets through a sequence of refinancing operations.
An initial rescue package for Greece, totaling around $140 billion, failed to calm investors last week. The unexpected sink in the stock market exacerbated the worries of American officials.
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