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Mapping the Potential Impact of Brexit on Indian Economy

Affiliations

  • Amity Business School, Amity University, Lucknow Campus, Lucknow, Uttar Pradesh, India

Abstract


Bold move of Britain to step out of the European Union came at a time when the global economy was actually in a bad shape and growth predictions for 2016 had been marked down. 'Brexit' resulted in weakness, fragility and uncertainty disturbing the markets. Even though Britain will remain a full member of EU for at least more than two years but exit negotiations with the European Commission has started soon. Question addressed in the present study is how these developments are likely to affect the Indian economy. In India, while Brexit is likely to cause slow growth, economic prospects remain relatively doubtful due to the affect of factors like strong monsoon, effect of pay hikes and higher public capex. India is strongly committed for factors like economic stability, while its basics were sound with "a very comfortable external position, a rock-solid commitment to fiscal discipline and declining inflation.

Keywords

Brexit, European Union, FDI, Indian Economy, Trade, Uncertainty.

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References


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