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India well prepared for 'Brexit': FinMin

Industry chambers have been asking the govt to keep a contingency plan ready for Brexit

Policy Pulse
Publish Date: Jun 23 2016 1:34PM | Updated Date: Jun 23 2016 1:35PM

India well prepared for 'Brexit': FinMin

Finance Ministry is carefully monitoring developments surrounding referendum in Britain on the country's continuity in the European Union and India was well prepared to handle any eventuality, a top official said early on Thursday.

 
"If Brexit happens, India is ready," Economic Affairs Secretary Shaktikanta Das tweeted. "Brexit vote today. We are closely tracking developments in UK. India well prepared," he added, referring to the crucial vote on Thursday.
 
Industry chambers have been asking the government to keep a contingency plan ready for Brexit.
 
"As a key emerging market and the one which is being preferred by the global fund managers, India could witness wild fluctuations or large outflows in sync with an overall trend," Assocham said in a statement. "That is something to watch for."
 
The Confederation of Indian Industry (CII) stressed that India invests more in the UK than in the rest of Europe combined, and has emerged as the that country's third largest foreign direct investor. 
 
"Access to European markets is therefore a key driver for Indian companies coming to the UK."
 
Britain ranks 12th in terms of India's bilateral trade with individual countries. It is also among just seven in 25 top countries with which India enjoys a trade surplus.
 
India's trade with Britain was worth $14.02 billion in 2015-16, of which $8.83 billion was in exports and $5.19 was in imports. The trade balance therefore was a positive $3.64 billion.
 
FICCI pointed out that Britain's exit from the European Union would create considerable uncertainty for Indian businesses engaged with the UK and might have an adverse impact on investment and movement of professionals to the country.