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Brexit May Bring Long-Term Gains For India, Say Experts
Feb 11, 2019

Britain is set to leave the European Union (EU) on March 29 and concerns remain across the globe with the financial markets already jittery over the possibility of a no-deal Brexit. For India, experts say, Brexit might have a short-term adverse impact but benefits lie in the long run.
So far, Brexit talks between England and the EU have not been fruitful and there are concerns that Britain might have to leave the Union without a deal which may have severe economic impact including a recession in England.
 
if there is Brexit without a deal then there could be short-term disruption while in the long run, it makes the UK less dependent on the EU giving countries like India an opportunity to negotiate directly with the UK, said Mayuresh Joshi, Fund Manager Angel Broking. 
 
An RBI report published earlier this month had also noted that the the likelihood of Brexit in March 2019 could offer opportunities for Indian exporters if bilateral trade agreements are renegotiated.
 
Earlier, last year the Bank of England had warned that a no-deal Brexit could send the pound plunging and trigger a worse recession than the financial crisis.
 
Explaining its impact on the domestic currency, Anindya Banerjee of Kotak Securities said that the no-deal Brexit will have a negative effect on the UK first, it will impact Europe, US, and the emerging markets subsequently.
 
An actual no-deal Brexit will impact the rupee only because of the outcome but if the sell-off continues in pound, the rupee will remain unaffected.
    

Ndtv.com

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