Much to the world’s shock and awe, our erstwhile colonisers, the Great Britain opted out of the European Union, with the ‘Leave’ campaign winning 51.8 per cent of the vote. British Prime Minister David Cameron has announced that he will quit office after three months (now that the referendum results are against his “Remain”campaign) and the UK Pound has hit a 31-year low.
Now with Great Britains bitter break up with the EU, the world market is a wreck’. Back home, Dalal street is seeing red and the rupee has crashed.
Here’s how Brexit affects India
1. Trade
India invests more in the UK than it does in all of Europe put together. The easy gateway to the European markets was a key driver for Indian companies. While we are the UK’s third largest FDI investor, with the exit, India will need to re-strategise.
2. Industry
Indian companies with big business interest in the UK will be hit ... Jaguar Land Rover, Britain’s biggest car-maker and a Tata Motors subsidiary, estimates its annual profit could be cut by 1 billion pounds.
3. Currency
The pound is the lowest it has been since 1985. Over 800 Indian companies employing over 1 lakh people will bear the brunt.
4. Immigration
Brexit seeks to build walls instead of bridges. So immigration laws will get tighter. Read- work visa woes. Indian students going to the UK to study may just feel less optimistic about work prospects.
5. Politics
The “people’s” controversial decision to leave the EU is a shot-in-the-arm for all those against referendum politics. While Arun Jaitley says India’s firewalls are solid, for now Brexit is painting quite-a-black-Friday!
ALDO READ: Brexit Impact: 4 Lakh Cr Knocked off From Indian Investors’ Wealth
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