The world has been talking about a phenomenon known as Brexit for the past few months. This move is basically a referendum signed by Great Britain which separates it from the rest of the European Union.
Owing to this change, there have been many related aspects of the economy and policies of the country that have undergone a severe change, which also affects other nations like India. Let us find out more about Brexit and how it affects India.
In June this year, the people of Great Britain signed in favour of a historic referendum to separate from the European Union. This sent the global economy into shock.
Traditionally, UK has been the closest ally of India. Indian companies have always used UK as a jumping point to serve the European market. Brexit therefore means the loss of an important ally in the EU.A large number of Indian companies have their bases in Britain as a way of accessing the lucrative European Market. They would now have to relocate to European countries, and need to spend to build infrastructure and staff. Further, India would have to deal with a more aggressive leadership in UK.
In the long run, however, the Brexit might not be that bad a thing. It would be in Europe’s interest to develop ties with India as a trade partner due to its vast demography. Also as the Chinese economy slows down, Europe would be keen to establish ties with a fast-growing economy like India who could be a strategic trade partner.