According to Assocham, risks to global economy and its spin off to India from Brexit are emerging out to be much larger than initially perceived.
“Given the increased global risks, it would be quite prudent for the government to announce successor of Raghuram Rajan…sooner than later,” the chamber said.
It also noted that fallout of Brexit makes it imperative for the Indian government to be more watchful of the political-economic scenario in Europe by setting up a high-level monitoring group.
The monitoring group should comprise senior officials from ministries of finance, commerce, information technology and the Reserve Bank, it added.
Active involvement of Indian High Commission in London and missions in several European capital should be sought in getting the real time information with a proper perspective, it added.
“The trouble lies in a widening political divide between Britain and the rest of the EU leadership. 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,” it said.
It said that due to Brexit, there would certainly be a damage in the market sentiment, leading to disruption in the investment flows alongside an impact on the currency valuations.