Greek Crisis to Hit Indian Exports, Trigger Capital Outflows

Commerce Secretary Rajeev Kher said exports from India would be impacted negatively if the European Union is hit from the Greece crisis, although he ruled out any major direct impact of the prevailing Greek situation.

"India does not have large exposure of Greece as far as trade is concerned," he said.

However, engineering exporters' body EEPC India said the economic crisis in Greece will impact engineering exports from India as European Union is the largest destination for such shipments. The industry body said it sees indirect impact from the UK, Italy, Turkey and France.

Industry chamber Assocham also said Indian economy is not really centric to Greece directly but if European Union is impacted due to this then India could be affected.

Europe is India's largest trading partner with $129 billion of merchandise engagement in 2014-15. Of this the European Union accounted for $97 billion with the UK, Germany, France and Italy being the leading partners.

The continent is the second biggest outsourcing market for the Indian IT firms after the US.

European stocks traded sharply lower with indices in Germany, France and the UK plunging in the range 1.68 per cent to 3.31 per cent.

Technology stocks in India faced selling pressure too with HCL Tech falling 2.78 per cent, Infosys dropping 1.58 per cent, Wipro was down 1.23 per cent on BSE.

Besides, shares of Bharat Forge plunged 4.03 per cent, Tata Motors was down 2.07 per cent, Havells India went down by 1.66 per cent, Motherson Sumi Systems lost 1.32 per cent and Tata Steel fell by 0.79 per cent.

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