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    How Does Brexit Affect India?

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    pkumarjothi6433
    The document discusses how Brexit may affect India. It begins by explaining that Brexit refers to Britain's exit from the European Union (EU). The UK held a referendum in which 51.8% voted to leave the EU. Arguments for Brexit included reduced sovereignty and increased ability to negotiate trade deals, while arguments against included economic benefits of access to EU markets and uncertainty. The document then summarizes potential impacts on several Indian industries, including negative short-term effects for the IT sector, apparel industry, and auto component manufacturers who export to the UK and EU. It suggests Indian businesses may need new trade agreements and sets positive impacts as increased UK-India ties and opportunities for Indian talent.

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    How Does Brexit Affect India?

    Uploaded by

    pkumarjothi6433
    84 views15 pages
    The document discusses how Brexit may affect India. It begins by explaining that Brexit refers to Britain's exit from the European Union (EU). The UK held a referendum in which 51.8% voted to leave the EU. Arguments for Brexit included reduced sovereignty and increased ability to negotiate trade deals, while arguments against included economic benefits of access to EU markets and uncertainty. The document then summarizes potential impacts on several Indian industries, including negative short-term effects for the IT sector, apparel industry, and auto component manufacturers who export to the UK and EU. It suggests Indian businesses may need new trade agreements and sets positive impacts as increased UK-India ties and opportunities for Indian talent.

    Original Description:

    impact of Brexit on Indian economy

    Original Title

    BREXIT

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    The document discusses how Brexit may affect India. It begins by explaining that Brexit refers to Britain's exit from the European Union (EU). The UK held a referendum in which 51.8% voted to leave the EU. Arguments for Brexit included reduced sovereignty and increased ability to negotiate trade deals, while arguments against included economic benefits of access to EU markets and uncertainty. The document then summarizes potential impacts on several Indian industries, including negative short-term effects for the IT sector, apparel industry, and auto component manufacturers who export to the UK and EU. It suggests Indian businesses may need new trade agreements and sets positive impacts as increased UK-India ties and opportunities for Indian talent.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    84 views15 pages

    How Does Brexit Affect India?

    Uploaded by

    pkumarjothi6433
    The document discusses how Brexit may affect India. It begins by explaining that Brexit refers to Britain's exit from the European Union (EU). The UK held a referendum in which 51.8% voted to leave the EU. Arguments for Brexit included reduced sovereignty and increased ability to negotiate trade deals, while arguments against included economic benefits of access to EU markets and uncertainty. The document then summarizes potential impacts on several Indian industries, including negative short-term effects for the IT sector, apparel industry, and auto component manufacturers who export to the UK and EU. It suggests Indian businesses may need new trade agreements and sets positive impacts as increased UK-India ties and opportunities for Indian talent.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 15

    HOW DOES BREXIT

    AFFECT INDIA?

    WHAT IS BREXIT?

    Brexit is the combination of the two words


    Britain and exit. [Britain + exit = Brexit]
    In this context, Britain is used synonymously
    with the United Kingdom.
    The UK consists of four countries: England,
    Scotland, Wales, Northern Ireland.

    OBLIVION-EU

    The European Union is a group of 28


    countries mostly located in Europe.
    It is an economic union which aims to ensure
    free movement of goods and services, labor
    and capital within the countries.

    WHY IS THE UK HOLDING A


    REFERENDUM?

    To fulfill electoral promise, David Cameron


    set June 23rd as the date for the UKs EU
    referendum.
    51.8% says out of EU
    48.2% says stay

    MAIN ARGUMENTS FOR BREXIT?

    Europes migration crisis


    Reduced British sovereignty
    Britain can negotiate a favorable
    agreement with EU
    negotiate free trade agreementswith other
    countries like India, China and the US.
    Costly membership:The membership fees of
    EU is 350 million pounds weekly

    ARGUMENTS AGAINST BREXIT

    economic benefits free access to the


    unified European markets.
    About 45 % of the UKs exports are to the
    EU.
    favor of the status quoas exit will lead to a
    lot of uncertainty in the market and can be
    disruptive to the economy
    The UK canwield greater authorityin the
    world by being a member of the EU.
    IMF report cautionsdeep recessionas a
    result of the exit.

    IMPACTS ON INDIAN IT SECTOR

    Within a few hours of the result, both the


    NIFTY and the SENSEX aredown by 4%.
    Indian IT Sector:Short-term negative, longterm uncertain
    Indian IT companies get anywhere from 6-18
    percent of their revenues from the UK.
    The UK has traditionally been the gateway
    for Indian IT firms to enter Europe

    APPAREL INDUSTRY: NEGATIVE


    IMPACT

    Britain makes up for roughly 1/3rd of India's


    apparel exports to EU (37% of total India's
    Apparel export share).
    With the present situation, market is going to
    show bit of reluctant towards this sector.

    AUTO COMPONENT MANUFACTURERS: NEGATIVE IMPACT

    Motherson Sumi, Mahindra CIE, Bharat Forge


    like auto components manufacturers are
    going to be badly affected as the EU's
    economy is expected to slow down
    it will lead to the decrease in auto industry
    sales and hence will be a huge blow to these
    companies.
    UK itself is one of the highest contributor in
    the Union.

    PROBABLE SOLUTION

    Selective Indian businesses are would be


    affected as they will lose the common
    market of EU.
    They will have to sign separate pacts
    with their beneficiaries and respective
    governments for business continuation
    New setups which would enormously cost
    the industry.

    POSITIVE IMPACTS ON INDIA

    The UK will make efforts to foster ties with


    India.
    The EU competences are no more
    english speaking Indian talent pool is
    definitely going to benefit out of it.

    FUTURE

    Indias macro fundamentals are very strong


    it will not impacting India,but it is going to
    impact Indian cos that manufacture in UK as
    they will not get the benefit of free
    movement of goods in EU. It will take two
    years for the separation to settle down, so
    one can adjust.

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