Thursday, June 23rd, 2016

India ready for Brexit , closely watching developments says finance ministry

Narada Desk | June 23, 2016 3:24 pm Print
Industry associations have been asking the government to closely follow the developments in UK
David Cameron, Brexit, Brexpats

India is closely watching the developments in Britian as it decides whether to stay with European Union or not. Finance ministry official said that India is prepared for any eventuality.

“If Brexit happens, India is ready,” Economic Affairs Secretary Shaktikanta Das had tweeted . “Brexit vote today. We are closely tracking developments in UK. India well prepared,” he added,

Industry and business associations have been asking the government to closely monitor the developments in Britian.
“As a key emerging market and the one which is being preferred by the global fund managers, India could witness wild fluctuations or large outflows in sync with an overall trend, That is something to watch for” Assocham said in a statement. “.

Britain ranks 12th in terms of India’s trade with individual countries. It is also among just seven in 25 top countries with which India enjoys a trade surplus.

FICCI said in a statement said that Brexit would result in uncertainty for Indian investment in UK.

India’s trade with Britian was $ 14.02 billion in 2015-16

Meanwhile an important financial dialogue between India and China was pushed back to July, as interlocutors were busy monitoring the referendum developments in Britain, officials said.

According to Finance Ministry officials in New Delhi, the 8th India-China Financial Dialogue was to be held in Beijing on June 27. But a week ago, the two sides decided to defer it by a month in the wake of the referendum in Britain to stay or pull out of the European Union.

Senior officials in the Finance Ministry in New Delhi and at the Indian mission in Beijing said the dialogue, in any case, is at the level of secretaries, and not ministers.

They added that all the other meetings of Jaitley while in Beijing — including an engagement with his Chinese counterpart Lou Jiwei on June 27 and interactions with investors and bankers — were on schedule.

The Finance Minister will also represent India at the first meeting of the board of governors of the Asia Infrastructure Investment Bank (AIIB) on June 25-26.

The India-China Financial Dialogue was established during the visit of Chinese Premier Wen Jiabao to India in April 2005. Thus far, seven rounds have been held — the last one in December 2014 in New Delhi.