New Delhi, Dt: 24(PTI)–India is well prepared to face any after effects of ‘Brexit’ said the Indian Finance Minister Arun Jaitley. India has strong economic fundamentals and adequate foreign exchange reserves. The Government is working closely with various regulatory bodies to mitigate the effects of volatility caused by ‘Brexit’.
Mr. Arun Jaitley asserted that the Government along with RBI (Reserve Bank of India) and other regulators is well prepared to meet the short and medium term consequences of ‘Brexit.’ He went on to clarify that the Government intends to minimize the impact on Indian economy by further stabilizing the macro-economic fundamentals and maintaining fiscal discipline. He also said that the Government will push for early passage of the GST (Goods and Service Tax) and other important bills to boost the economic growth of the country. The good monsoon this year will also have positive effects on Indian Financial market.
The RBI Governor Raghuram Rajan has said that RBI is incessantly observing the market developments and that the Indian economy is strong enough to mitigate the impact of ‘Brexit.’
There has been volatility in currency and financial market observed in India after the Brexit vote; however it is stable compared with depreciated value of global financial market and currencies .The Indian industrialists will be able to swim out of ‘Brexit’ strongly, Mr Raghuram Rajan has been quoted as saying.
India holds huge corporate investments in Britain, several Indian firms and industries have offices there. After Britain’s withdrawal from the ‘European Union’ they will have to realign their business plans, said Assocham (The Associated Chambers of Commerce in India) Secretary General D S Rawat. However, Brexit will not have any long term effects on India, he went on to say.
CII (Confederation of Indian Industry) Director General Chandrajit Banerjee has similarly stated that the effects of ‘Brexit’ on India are short lived and will not last for long.