Britain voted out of EU aka European Union and the whole world is freaking out, apart from Amarica, of course! Brexit is an abbreviation of “British exit”, which refers to the June 23, 2016 referendum by British voters to exit the European Union. Actual separation may be effective only by January 2018.
The referendum negatively affected global markets, including many currencies, causing the British pound to fall to its lowest level in decades. Prime Minister David Cameron, who supported the UK remaining in the EU announced he would step down in October.
But there is still more to Brexit than what meets the eye! Here are 9 expected ways this will impact Indian & Indians-
World oil prices are plunging more than 6.0% in Asia since the news, expect more & this is a good news for India. Every $1 drop in crude prices will result in roughly $1 billion savings in India’s oil import bill, thus reducing its trade and current account deficits (CAD).
The British pound dropped to a 31-year low on Friday and the Indian rupee, consequently, fell by 89 paise against US dollar to 68.17 in early trade. However RBI Governor Raghuram Rajan has reassured. “Where liquidity is needed, we will provide liquidity whether domestically or internationally.” He said Brexit would not impact the rupee as much as it is feared widely.
India’s bilateral trade with Britain was worth $14.02 billion in 2015-16, out of which $8.83 billion was in exports and $5.19 was in imports. The trade balance thus was a positive $3.64 billion. After Brexit, the Indo-British trade may take a hit.
A drop in the Pound could also result in an increase in students from India choosing the UK as a destination as it will make education significantly cheaper there. This is the best takeaway from the mayhem going on!
Travel to Britain would get less expensive than before. Rejoice!