New Delhi: The fallout of Greece crisis has largely been factored in by markets even though an immediate jolt is not ruled out and India can be impacted with upheavals expected in stocks and debt markets, Assocham has said.
"For some time, the markets would stay in a state of flux and the rupee may lose ground if situation in Greece worsens," Assocham Secretary General D S Rawat said.
Greece is currently facing a payment crisis, which is scheduled to repay a debt of $ 1.8 billion to the International Monetary Fund (IMF) on June 30, but it's believed that the country does not have the money to pay.
It becomes, therefore, imperative that "India should ring-fence itself as much as possible" by guarding its financial institutions and limiting exposure to countries where the impact of the crisis could be felt more.
"In a tumultuous global situation... we need to double our efforts to strengthen our economy in terms of domestic demand, investment and cleaning up the bottlenecks. Not only big-time investments should be announced, but also big-ticket projects should get off the ground," the industry said.
It suggested that while RBI should keep a close watch on the currency movement, the government should keep up efforts towards improving supply side to tackle inflationary issues.
However, with the monsoon making a decent progress, the prospects of rural economy look far better now 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 the Lehman Brothers collapse," Rawat said.
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