BREXIT: “An Opportunity in the Turmoil- for India” – BY: Ayushi Purwar
BREXIT-
Brexit or ‘Britain exiting the European Union’ is an international event that can not be taken up lightly.
Earlier on 23rd JUNE, a referendum was held in U.K. to decide weather Britain should leave or remain in European Union , England voted for BREXIT by 53.40%.With the unexpected decision, David Cameron resigned and Britain got its new Prime Minister-Theresa May ; value of Pound also fell down to 31-year low of about 8%.
WHAT IS E.U. AND WHY BRITAIN VOTE TO LEAVE?
The European Union is an Economic and Political partnership involving 28 member countries. It was formed after Second World War and has grown to become a “single market” allowing goods and people to move around. It has its own parliament and currency used by 19 countries .The reasons of Britain people voting for BREXIT could be the thought of “getting less for what they are paying” i.e. Britain is not enjoying much advantages in spite of paying heavy amount of membership fee to E.U. Post Brexit, U.K. could keep the money it currently sends to E.U. In recent years, it has been surveyed that 59% of Eastern Europeans have come to Britain to do a job. Immigration had been has become a highly politicized issue in Britain as some voters are also concerned about immigrants using scarce public service.
BREXIT: BAD FOR BRITAIN BUT POTENTIALLY GOOD FOR INDIA.
Looking at it from India’s perspective, Brexit is an “Opportunity in the turmoil” for us.
- Travel to U.K. would be cheaper:
Good news for all Indians aspiring to travel to U.K. is that their travel plans to U.K. have got cheaper. On the news of final Brexit result, British Pound has depreciated to about 8%.this simply means that less rupee can buy more pounds now.
- Cheaper to study in U.K.:
Brexit may make life easier for hundreds of students who are looking forward to pursue their studies in U.K. The value of pound is at its 31 year low, which will help them to save their cost of living, schooling and other expenses in U.K.
- Real estate:
This would be the best time for Indian Investors and businessman to buy property in U.K. as United Kingdom, especially London has been one of the favorite destination for Indians to Invest. With Brexit, property prices are also expected to fall because of stronger value of rupee against pound.
- Indian companies that have exposure to U.K. and Europe may get temporary hit because of Brexit as U.K. has always acted as a gate pass for Indian Companies to access the European Market but in the long run, it would force India to maintain relationships with other countries so as to boost up its market as well as the Indian Economy.
- Pound is felling continuously after Brexit. This continuous fall of pound will benefit Indian Companies as they will now have to pay less in case of repaying loans. For example I am a Britisher and I have given you 10 pound which was equal to Rs.100 in 2015 (1 Pound =Rs. 10). Now Post Brexit, 1 Pound has become equal to Rs.5…..you will go to Forex market and will convert them for Rs. 50 only and will get 10 Pounds.
Thus, where the whole world is glooming over the doomsday, India still has some reasons to smile.
Brexit is an opportunity for two countries tied by history, people, and values to work together and overcome the biggest challenge of our age.
:BY- AYUSHI PURWAR