India growth unlikely to be hit by Greece crisis: ING

MUMBAI: India's reliance on domestic factors for growth and comfortable foreign exchange reserves will help the nation insulate itself from the eurozone debt crisis, financial services firm ING today said.

Although the International Monetary Fund and eurozone nations are trying to bail out crisis-ridden Greece with their mammoth rescue packages, the sentimental impact may leave domestic financial markets volatile in the near-to-medium term, ING Financial Markets Economist Deepali Bhargava told reporters here today.

"We do not expect a huge hit (on Indian economy) from the external side as the recovery is based on domestic factors. We also have comfortable reserves. However, this may result in high volatility in domestic financial markets," Bhargava said.

ING Chief International Economist Rob Carnell warned that the current eurozone debt crisis, which is a fall out of the 2008 global financial crisis, could lead to the downgrading of ratings of countries like Spain, Ireland and Portugal.

Carnell added that the debt crisis may also weigh heavily on the euro and it is expected to drop further during the course of the year.