So, if you are pondering your head about BREXIT for the last couple of days,, here are a few things you should know…
What is BREXIT?
BREXIT is a portmanteau of “British” and “Exit”, which refers to the exit of Britain from the European Union (EU). On 23rd June 51.9% of the people voted to leave EU despite Scotland and Northern Ireland backed staying in.
Why do they want to exit??
- Prime Minister David Cameron said that the EU imposes too many restrictions on British law makers.
- UK might be forced to adopt Euro instead of Pound. ( 1Pound = 1.37 Euro)
- Euro is not only unstable, but is also influenced by weaker sections like Greece.
- UK is also concerned about EU’s restrictions imposed on their Immigration laws.
- EU’s economic policies are superior than Britain’s.
Should INDIA care about the exit??
Even though India need not be overly worried about the Brexit, however it will have an impact on Indian economy.
- Indian firms made their investments with wider European markets in mind.
- It affects the ease of doing Business in India.
- India always considered Britain as a gateway to Europe.
- Within a few hours of the result, both Nifty and Sensex were down by 4%.
- The pound depreciating against the INR makes the UK a better place for shopping.
- It’s a good thing for Indian students in the UK.
- Scotland might leave the UK and join the EU.
- David Cameron would resign (Ex MP Boris Johnson might succeed him).
- Britain’s account for 3.9% of the world’s output, which might affect the global economic weather.
- This can make London a less advantageous place to do Business.
- A large no. of companies, particularly banks are likely to pack up at least some of their workers and move out of London.
- London could lose 40K workers in the wake of BREXIT.
Thus, the entire BREXIT vote can be relooked by the existing Government and might be reconsidered. A petition has been filed for a rerun of the EU referendum.
So, this was an effort to write an overview of the ongoing BREXIT affair. If you have something to say about it, don’t forget to comment down.