India comfortably placed to withstand Greek debt crisis fallout

NEW DELHI: India Inc today said the country's economy is comfortably placed to deal with risks that might arise in case Greece defaults on the debt repayment due to the International Monetary Fund.

"Our macro fundamentals are strong, current account deficit is under control, foreign exchange reserves have touched a record high and rupee continues to be stable, all of which provide the economy with the requisite strength to withstand any adverse fallout from the Greece crisis, CII Director General Chandrajit Banerjee said.

"Besides, over the last year and more, the government has taken many path-breaking initiatives aimed at resolving the macro-economic imbalances which would provide a positive momentum to growth, going forward," he added.

Greece's bailout programme is expected to expire on Tuesday. The debt-burdened country is expected to miss a 1.6-billion-euro (USD 1.7 billion) debt repayment due to the IMF the same day.

"The deepening of the Greek debt crisis is unfortunate for the global economy which may impact the economic and business sentiments across the world."

"However, we believe that India is well prepared to handle the shorter term volatilities," PHD Chamber President Alok B Shriram said.

"Our macro-economic fundamentals are very strong and almost all lead indicators are in positive trajectory," he added.