Home / Knowledge / News / Apparel/Garments / Assocham says risks from Brexit more than perceived
Assocham says risks from Brexit more than perceived
01
Jul '16
Courtesy: conservativehome.com
Courtesy: conservativehome.com
Trade and Industry body Assocham has warned that the risks to global economy and its spin off to India from Brexit are emerging out to be much larger than initially perceived.

The risks make it imperative for the government to heighten the watch on the unfolding political-economic scenario in Europe, by setting up a high level monitoring group comprising inter-ministerial and agency representatives, it said in a status paper.

Given the increased global risks, it would be quite prudent for the government to announce successor of Dr Raghuram Rajan as the RBI Governor sooner than later, the chamber added.

After a brain-storming assessment by its leadership based on the fast moving developments in EU headquarters in Brussels , UK, Germany, France and Italy after the Brexit vote of June 23, the Assocham has come out with a status paper , suggesting much greater watch on the situation, than just being complacent , taking solace from strong fundamentals of the Indian economy.

The chamber has suggested formation of a high level monitoring group comprising senior officials of the ministries of Finance, Commerce, Information Technology and the Reserve Bank of India. Active involvement of Indian High Commission in London and missions in several European capital be sought in getting the real time information with a proper perspective from ground zero. Constant inputs should be sought from the Indian firms with bases in Britain and across Europe.

“The damage is not limited to the global economy and the stock market sentiment. The trouble lies in a widening political divide between Britain and the rest of the EU leadership on the one hand and then within UK, on the other. 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 Assocham paper highlighted.

The paper analysed the situation well beyond the currency movement of the pound sterling and euro against dollar and the arbitrage impact on the Indian firms doing trade in Europe.

“There are clearly two big takeaways, as assessed by the Assocham top policy making leadership, from the Brexit. First, there would certainly be a damage to the market sentiment, leading to disruption in the investment flows alongside an impact on the currency valuations. Secondly, the way political relations evolve between the EU and the British leaders would be the key , because those would determine the terms of divorce. Any harsh and bitter outcome would be disastrous for the world trade and investment,” it said.

Assocham Secretary General D S Rawat who has been reaching out to the chamber's offices in London, Paris and Spain has said though the RBI has been doing professional job par excellence, extra-ordinary situation may emerge as different trading giants like China might tweak their currency valuation, making going tough for the Indian exports to the EU, India's largest trading partner.

“An eagle eye must be kept on China,” he said. As it is, 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. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Alliance to form joint entity for safety in factories

Textiles | On 24th Apr 2018

Alliance to form joint entity for safety in factories

On the 5th anniversary of the Rana Plaza Collapse, The Alliance for...

China’s Alibaba partners with Thailand for digital trade

Textiles | On 24th Apr 2018

China’s Alibaba partners with Thailand for digital trade

China’s Alibaba Group recently signed an agreement with the Thai...

ACFTA to benefit Egyptian RMG exports: trade body official

Apparel/Garments | On 24th Apr 2018

ACFTA to benefit Egyptian RMG exports: trade body official

Egypt’s readymade garment (RMG) sector’s exports to African countries ...

Interviews View All

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Nishank Patel
Shri Dinesh Mills Limited

Broad range of fabrics will sell well this financial year

Headhonchos
Indian textile value chain

'One nation, one tax' is a great concept

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


April 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search