Impact of Brexit and India’s Preparedness:A Perspective

Britain’s decision to withdraw from the European Union on June 24, 2016 ceasing its long affiliation since January 1, 1973 has sent shockwaves across the globe. The markets have collectively reacted sharply leading to turbulence especially in financial markets. The investors are found dumping stocks and risky assets opting for safe heaven assets. The earnings outlook of corporate entities has taken a beating. The Indian companies which have their business contacts and locations in Britain and Europe are feeling the pinch of Brexit. However, our regulators are of the opinion that the nation is ready to handle the eventualities of Brexit. Against this background, this paper intends to examine the pros and cons of Brexit and India’s preparedness in handling the same. Narrative approach is adopted in discussing the issues pertaining to the impact of Brexit and India’s preparedness.