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New Delhi, May 10 (PTI) Emboldened by India overcoming the global financial crisis faster than many others, Finance Secretary Ashok Chawla today allayed fears of Greece debt crisis impacting the Indian economy. "I think we are immune. We were immune when there was a much larger international financial crisis," a visibly confident Finance Secretary Ashok Chawla told reporters on the sidelines of an Assocham function. The European Union and the International Monetary Fund (IMF) today unveiled a mammoth nearly USD one trillion (euro 750 billion) bailout package for troubled Eurozone countries. As far as India is concerned, the impact will be minimal. In the short run, it might help India in terms of India being regarded as a relatively more safe haven," Chawla said. "Capital flows are determined by various factors, one of them quite clearly, evidently is the safer the destination, more the money goes there," he added. Meanwhile, the benchmark Sensex on the Bombay Stock Exchange today soared by 561 points, the biggest single-day gain in nearly 10 months, on Strong buying support from foreign institutional investors. Since the start of 2010, the time around which fears of sovereign debt crisis in Europe began to appear, there was a net inflow of foreign institutional funds into the Indian capital markets till April-end, which was Rs 54,606 crore. However, in the first week of May, the FIIs turned net sellers in the market on fears of Greek crisis deepening and spreading to other nations in the Eurozone. They decreased their exposure by Rs 840 crore. According to Chawla, the debt crisis in Greece will have some hiccups in the Eurozone, but it will not have a major impact on the international financial community. Greece is much smaller in scale and magnitude to what the world has seen in the last one-and-a-half years, Chawla said. The fears of worsening crisis had led to the announcement of a USD 147-billion bailout package for debt-stricken Greece by the Eurozone nations and the IMF on May 2. The Sensex fell all the five days last week, shedding a whopping 789.6 points to close at 16,769.11 on Friday, 4.5 per cent down over the preceding week. However, the announcement of a nearly USD 1 trillion rescue package for Greece resulted in the biggest single day gain of 561 points in 10 months in Sensex, which closed at 17,330.55 on emergence of buying by foreign funds. Chief Economic Advisor Kaushik Basu, too, recently said the ongoing sovereign debt crisis in Europe may, in fact, turn advantageous for the country''s capital markets if it is contained at the present level. "If a crisis in another industrialised country is a relatively small crisis, in fact, we get some very unusual advantage. More money flows into India," Basu had said, adding people look for safer havens to park their money.
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