Home / Knowledge / News / Textiles / India must have contingency plan on Brexit: Assocham
India must have contingency plan on Brexit: Assocham
22
Jun '16
Ahead of the ‘Brexit’ referendum scheduled for June 23, an Assocham Assessment Paper has said the ‘Leave’ vote for Britain from the European Union would surely unnerve the global financial markets, leaving strong ripples for the Indian markets as well, necessitating a contingency plan by the government and the Reserve Bank of India.

Since it is expected to be a close call between the ‘Leave’ and ‘Remain’ votes in the referendum which has emerged as a major risk related event for the global economy, the Assocham paper has said , “ there could be an upheaval in the financial markets out of sheer panic, at least in the short term”.

It said the Brexit event is coinciding with the concerns over a possible outflow of $20 billion due to redemption of the FCNR deposits , though the current account situation at this point of time is quite comfortable thanks to lower bill of imported crude oil for the last over 18 months.

“With London being a nerve centre for the global firms, a fear factor has gripped the entire financial world. As a key emerging market and the one which is being preferred by the global fund managers, India could witness wild fluctuations or large outflows in sync with an overall trend. That is something to watch for,” the chamber said.

It expected the RBI to be ready with a contingency plan for effective intervention if there is a pressure on the dollar supply because of outflows of funds from the emerging markets.


“However, in the medium to long term, the funds shuffled in an uncertain Britain and European markets could find way into the Indian markets, but in the immediate term, anything can happen and as a credible economy, we have to be ready and be on top of the situation,” Assocham said, adding it has full confidence in RBI Governor Raghuram Rajan to deal with the fast unfolding global events.

When it comes to merchandise trade and foreign direct investment (FDI) , there are no big issues in the short to medium term as in the case of ‘exit’ , the Britain and EU would have to negotiate the terms of separation over a period of two years. That would give enough time to India policy makers and industry to re-align with the changing European landscape, the paper observed.

According to one school of argument, UK would find it easier to negotiate and sew up a Free Trade Agreement with India and similar arrangements with China and other fast emerging economies, unlike protracted India-EU trade negotiations stuck for over nine years without any tangible results. The India-EU trade deal is stuck also because of red tape and complicated bureaucracy and absence of convergence among different EU member countries’ interest. “On the other hand, a trade opening pact can be reached with Britain within a matter of months”, the Assocham paper said. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Textiles | On 24th Aug 2017

US, Mexico, Canada committed to updating NAFTA

The Unites States, Mexico and Canada have asserted their commitment...

Courtesy: Walmart

Apparel/Garments | On 24th Aug 2017

Walmart partners Google for voice shopping

US based multinational retailer Walmart has entered into a...

Textiles | On 24th Aug 2017

Pakistan's textile exports increase 2.78% in July 2017

The value of textile and garment exports from Pakistan increased by...

Interviews View All

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

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

August 2017

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
67.7%
No
16.1%
Skip
16.1%

Total Votes: 31

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
45.2%
No
35.5%
Skip
19.4%

Total Votes: 31

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
83.9%
No
6.5%
Skip
9.7%

Total Votes: 31

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
61.3%
No
9.7%
Skip
29.0%

Total Votes: 31


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