Industry and trade association 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. In a status paper, Assocham said, the risks make it imperative for the government to heighten watch on unfolding political-economic scenario in Europe, by setting up a high level monitoring group comprising inter-ministerial and agency representatives. Given the increased global risks, it would be quite prudent for the government to announce successor to Raghuram Rajan as the RBI Governor sooner than later, it added.

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, 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.

The association 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 capitals is 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.