Its an historic day as something will change the map of the world for ever. In their referendum Britons have voted to get out of the EU. Here are the key takeaways from this exit on how it will affect India.
- Britain will not be a part of European Union anymore as they have voted to leave EU and break their 41 year old relation.This is going to change the History for ever. Britain is the first country to exit the EU. After Brexit fear is that other members of EU can also choose to leave. This exit has put a question mark on the future of EU.
- Basic reason for this was the increasing issues with immigrants and globalization affecting their economy.
- Prime minister David Cameron will resign.
- In reaction to this news Indian market collapse badly. Leading index Nifty was down around 4% but later on it recovered slightly.Rupee also plunged to a reaction to economic instability.
- Gold jumped around 6% in reaction to Britain’s exit
- Companies having exposure in UK also feel the heat. Tata motors fall more than 10% amid fear of losing its revenue from UK as their major sales were in Britain.
- Some analysts says that it will be good for India in future as it open the new ways for business in Britain as it will not be bound by EU norms anymore.
- It is Indirectly a good news for US as it is going to benefit them now there is no power to challenge them. US always wanted to break the strength and unity of EU.
- Most of European markets are down around 4-6%.
- Some action is expected from RBI and rupee fall may affect Indian economy badly.
