What’s Lehman in Greek?

Though India’s forex reserves of $290bn look comfortable when compared to FY12’s trade deficit of $187bn, it’s important to keep a very close eye on the ever-ballooning crisis in Europe, especially its banks. Indeed, while the US collapse, and post-Lehman recovery, had a far greater impact on global growth, it’s quite the reverse for India. Apart from the fact that a fifth of India’s exports are to Europe as compared to half that to the US, the real area of concern is India’s large exposure to European banks, including for trade finance.

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