Ongoing developments in Greece have only indirect implications for India and their impact, if any, is difficult to quantify, Finance Secretary Rajiv Mehrishi said on Monday.
“We are only indirectly affected by the Greek crisis. If there was any adverse impact (it) is difficult to quantify… Then there would be a positive impact also which is also difficult to quantify,” he said.
Greece, which is going through a financial crisis, has reached a desperately-needed bailout deal with the eurozone which will prevent the country crashing out of the European Union having a single currency.
Greece’s leftist Prime Minister Alexis Tsipras has agreed to tough reforms in return for a three-year bailout worth up to 86 billion euros (USD 96 billion), the country’s third rescue programme in five years.
Indian stock markets reacted positively to the news of bailout package with the benchmark BSE Sensex rising by over 300 points in the intra-day trade.
“(Stock) markets work on sentiment and it is impossible to say what they are reacting to and what they are not reacting to,” Mehrishi said.
He further said that upswing in stock markets will help the government in pursuing the ambitious disinvestment programme.
“Any rise in market is an opportunity. Any rise in (stock) prices will boost our disinvestment programme,” he added.
The government proposes to raise Rs 69,500 crore from disinvestment and strategic sale in state-owned companies during the current financial year.
Replying questions on rupee movement, the Finance Secretary said, “our exports are impacted by hardening of rupee. So if euro doesn’t depreciate much then our imports won’t be affected much.”
In the early trade, rupee depreciated by 9 paise to trade at 63.48 against the dollar due to fresh demand from importers and gains in the American currency against major currencies globally.
On rising bond yields, he said, “I have been consistent with not commenting on what RBI does. RBI is the debt manager and it’s up to them to decide what to do with high yields.”