It is now widely accepted that India is better placed than many other emerging markets to protect its economy in case there is financial panic following a Greek default. The credit goes to two Indian governments learning the lessons of the July 2013 taper tantrum to build up defences, while other economies such as Turkey merrily continued down the same road.
Greece is not the only ticking time bomb. Many are genuinely worried about a financial shock in China. Its central bank has been cutting interest rates to keep the asset bubble inflated, but the experience from the famous Greenspan put shows a central bank cannot be a permanent backstop. Fundamental weaknesses eventually overwhelm the promise of more liquidity, as they did in September 2008 in the US.
Many Asian countries export heavily to China as part of intricate global supply chains. The risk they face is serious. It’s another advantage for India, though more by accident than strategic wisdom.