Understanding BREXIT
Brexit has been a political goal that has been pursued
by various individual, advocacy groups ,and political parties alike. Such a
referendum was also held back in 1975 where in Britain had voted against exit
from the EU(then European Economic Community).
Why BREXIT ?
· EU threatened Britain’s sovereignty.
In the past few years’ , various policies
of the EU have shifted focus from individual member states to the central
bureaucracy in Brussels. Various topics
like competition policy, agriculture , copyright and patent law the EU rules
override the nation’s laws.
The EU also lacks accountability to the
British citizens’ or to their elected representatives in parliament.
·
Irksome
Regulations of the EU on the Britain
Regulations by the EU according to
supporters of Brexit have adverse effects on the economy of the country causing
losses worth millions of dollars every
month. These include regulations on Vat Services on energy bills, fishing, immigration laws, Banking regulations among
other things.
·
EU
restricts reform
Supporters of the Brexit regime feel that
the EU entrenches Corporate interests and prevents radical reforms.
·
EU allows
too many immigrants
While the main cause for EU’s exit is based
on economic reasons, n as the EU law but the emotional case for Brexit is
heavily influenced by immigration as the EU laws provides citizen of countries
of the EU to freely live travel and work in other EU countries.This has
severely impacted British citizen’s especially since the financial crisis of
2008 due to which people from various European countries had migrated to
Britain in search of jobs undercutting the native working population.
Post Brexit the Britain may follow a grade
point system as adopted by Australia for allowing immigrants.
However, it would be
difficult to determine the actual effects of the BREXIT till it actually
happens. The process of BREXIT will take place gradually over a period of 2
years’. While there are various pros there might be a lot of cons in terms of
trade and investment-Britain stands at the entry point for all trade with
European Nations.
BREXIT:
Impact on India
 |
| Pic Source:Internet |
·
Stronger Ties
with Britain: Brexit could help strengthen India-UK economic relationship
as the UK seeks to compensate for loss of preferential access to EU
markets.India’s focus on innovation, entrepreneurship and high-end work renders
it a very attractive destination from a talent standpoint and equally in terms
of market access. This could work to the benefit of the IT sector in India
since the UK currently accounts for about 17 percent of India's IT exports
worldwide.
·
Positive
Balance of Trade: Information
available with the Ministry of Commerce and
Industry shows India's bilateral trade with Britain stood at $14.02
billion in 2015-16, out of which $8.83 billion was in exports and $5.19 was in
imports. The trade balance
thus was a positive $3.64 billion.
·
Import and Export: UK
exports textiles ,clothing,machinery and auto ancillaries from India.Almost
17-18% of the total exports in the month of April, 2016 is to the UK.On the
other hand India(mostly pharma) imports 1-2% of the total imports from the UK.
·
Currency: The pound
may take a falling against the dollar leading to a fall in the rupee
·
Make In India : Post Brexit
The UK will be free of a lot of tariffs and taxes of the EU .It will be able to
provide India much needed investment and expertise in cyber security and
military technology amongst other things thus ultimately aiding the PM’S MAKE
IN INDIA initiative.
·
Indian Companies : Over 800 Indian Companies are involved
in direct trade with the UK.Brexit would mean a higher cost for these companies
as traditionally London has served as a standpoint for all trade for these
companies.Brexit would mean higher tariffs and taxes for these companies as UK
exits the EU.
Visit website: www.nclt.in
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