JOIN USGovt finds no long-term impact
Seeking to allay concerns over Brexit impact on India, the government on Friday said the country’s economy will not suffer from any long-term impact of Britain’s decision to leave European Union (EU) and that it is prepared for all eventualities
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“India is well-prepared to deal with the outcome of Britain’s referendum on leaving the EU. India is strongly committed to macroeconomic stability, while its fundamentals were sound with a very comfortable external position, a rock-solid commitment to fiscal discipline and declining inflation,” Finance Minister Arun Jaitley, who is currently on an official visit to China, said. “Contingency plans are already in place and the government will implement them once the market resets,” Minister of State for Finance Jayant Sinha said.
“Let’s not see this as unremittingly gloomy. There are a couple of silver linings. Oil prices have come down. That’s good for India’s macro situation,” Chief Economic Adviser Arvind Subramanian said.
“Since India has a huge corporate investment in the UK economy, Indian firms with manufacturing or other facilities in Britain will have to realign their business plans,” according to industry lobby Assocham.
CII President Naushad Forbes said that with the UK voting to leave the EU, Indian companies will reengineer their European strategy. “This should not be an issue. India will not be affected due to Brexit if we look at a mid- to long-term perspective,” he said.
Apparel Export Promotion Council (AEPC) Chairman Ashok G Rajani said, “Britain is our largest market in the EU accounting for around 30% of our exports to the EU. It’s exit would significantly dilute the relevance of EU FTA for us.”
Exporters’ body FIEO President S C Ralhan observed that in the immediate future, volatility in currency may put pressure on India’s exports as both British Pound and Euro will depreciate giving greater competitiveness to their products particularly in third countries.
Optimism of opportunities
Centre says Brexit won’t affect India’s economy in a big way
Says it is prepared for all eventualities
RBI Governor Raghuram Rajan says economy has good fundamnetals
CEA Arvind Subramanian indicates a few silver linings