JOIN USGreece’s resounding no to the bailout proposal from its creditors may have rattled the financial markets temporarily, but India is insulated from the crisis, government’s Chief Economic Advisor Arvind Subramanain said on Monday.
He said there may be a flight of rupee to the dollar market but a strong forex reserve should help reduce the impact.
“In these situations what mostly happens is there is flight to dollars to a safe haven. Rupee might also be affected by that. But nothing gets unusual at all so far,” Subramanian said.
“We are well protected in at least three ways. Our macro-economic situation is much more stable. We have forex reserves,” the CEA said.
Subramanian said that the Indian economy remained an attractive destination for investors.
Cash-strapped Greece became the first developed country to default to the IMF, when it failed to pay an instalment of $1.6 billion on June 30.