India should protect financial system against Greek crisis: Assocham

New Delhi, June 25 (IANS) With international creditors the previous day demanding major changes to the Greek government’s tax and reform proposals, Indian industry chamber Assocham on Thursday said India should try and insulate its financial institutions and limit exposures to the countries which feel greater impact of the Greek crisis.

India too will be impacted with upheavals expected in the stocks and debt markets,” the Associated Chambers of Commerce of India said in a statement here.

“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’s crisis could be felt more,” said Assocham secretary general D.S. Rawat.

In the worst case scenario for Greece, Indian exports to Europe may take a hit, but the world today is much more prepared than it was in 2008 when the crisis was triggered by the US financial system collapse, he added.

Citing the announcement earlier this week here of a joint venture by SoftBank of Japan, India’s Bharti Enterprises and Foxconn of Taiwan to set up a $20 billion solar power project in India, Assocham said such examples of success “will be the biggest defence from any global headwinds”.

“We need to double our efforts to strengthen our economy in terms of domestic demand, investment and cleaning up the bottlenecks,” he said.

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