The crisis in Greece may not have much of an impact on India’s business sentiment as expectations from the European Union have already been low for some time now, said Commerce Secretary Rajeev Kher.

“The only way we have recently been affected by the developments in the EU is by the depreciation of the Euro in third markets and its effect on trade,” said Kher.

But a further devaluation in the euro can have some impact on trade and trigger some foreign investment outflow from India. The Finance Ministry is already in talks with the RBI to take steps to deal with such a situation.

Finance Secretary Rajiv Mehrishi said the fallout from Greece would not have a direct impact but warned that “if yields on euro bonds go up, it might impact inflows and outflows from India”.

Further, if yields on government securities go up in the US, that, too, may impact inflows and outflows, he noted. “We really don’t know how they (bond investors) will reallocate their portfolios,” he said.

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