The fallout of Greece crisis has largely been factored in by the global financial markets even though immediate jolt is not ruled out and India too will be impacted with upheavals expected in the stocks and debt markets, the ASSOCHAM said.
"For some time the markets would stay in a state of flux and rupee may lose ground if situation in Greece worsens," ASSOCHAM Secretary General Mr D S Rawat said.
It becomes, therefore, imperative that India should ring-fence itself as much as possible by guarding its financial institutions and limiting the exposures to the countries where the impact of Greece crisis could be felt more.
Besides, in a tumultuous global situation where the recovery is seen in far and few places, "we need to double our efforts to strengthen our economy in terms of domestic demand, investment and cleaning up the bottlenecks. Big time investments should not only be announced, but also the big ticket projects should take off the ground.
Let us have some examples of success. It would be only through pushing the envelope that we will be able to maintain and improve the momentum of foreign investment that has been witnessed in the last 15 months. That will be the biggest defence from any global headwinds," the chamber said.
All out efforts should be made to fast track the type of projects announced by SoftBank of Japan and Foxconn of Taiwan so that a loud and clear message goes around that India means business.
The chamber said, while the RBI should keep a close watch on the currency movement, the government should keep up the efforts towards improving supply side of the inflationary issues.
With Monsoon getting active with a good spread , the prospects of rural economy look far better today than about two weeks ago.
In the worst case scenario for Greece, Indian exports to Europe may take a hit, but the world out there is much more prepared today than was the case in 2008 when the crisis was triggered by Lehman Bros collapse, ASSOCHAM Secretary General said.