Assocham suggests inter-ministerial group to monitor Europe

New Delhi:India should set up an inter-ministerial group to monitor the political-economic scenario in Europe since the risks posed by Brexit to global economy and its spin-off for India are emerging to be much larger than initially perceived, a top industry organisation said here on Tuesday. "The risks to global economy and its spin-off to India from Brexit from European Union are emerging out to be much larger than initially perceived, making it imperative for the Indian government to heighten its watch on the unfolding political-economic scenario in Europe by setting up the inter-ministerial group...," Assocham said in a status paper. "Given the increased global risks, it would be quite prudent for the government to announce a successor to Raghuram Rajan as the RBI (Reserve Bank of India) Governor sooner than later," the Associated Chambers of Commerce and Industry of India added. The chamber has suggested that the high-level monitoring group may comprise senior officials of the ministries of finance, commerce, information technology and the RBI.  "The active involvement of the Indian High Commission in London and missions in several European capitals be sought in getting real-time information from ground zero with a proper perspective. Constant inputs should be sought from Indian firms with base in Britain and across the European continent," it said. "The damage is not limited to the global economy and the stock market sentiment. With this kind of charged-up political environment, the damage to the world economy would be much more than just a few sectoral gains or losses," the paper said. "Different trading giants like China might tweak their currency valuation, making the going tough for Indian exports to the EU, India’s largest trading partner. An eagle eye must be kept on China," Assocham Secretary General D.S. Rawat said.  India’s exports have slowed for more than 18 months in a row, and any rise from here would largely be on account of a very low base impact.