The impact of Brexit

Are you ready?

02 October 2019
WHAT is BREXIT? HOW it HAPPEN?
• Brexit is an abbreviation for “British exit”, referring to the Uk’s decision of leaving the European
Union (EU).
• The EU is an economic and political union involving 28 European countries. It allows free trade
and free movement of people to live and work in whichever country they choose.
• By invoking ARTICLE 50 of the LISBON TREATY the British government will formally notify the EU
of its decision to leave the European Union.
• A public vote - or referendum - was held on Thursday 23 June 2016, to decide whether the UK
should leave or remain.
• Leave won by 51.9% to 48.1%.
• The referendum turnout was very high at 72%, with more than 30
million people voting - 17.4 million people voted for Brexit.
• The UK joined in 1973, if the UK leaves as planned on 31 October, it would be the first member
state to withdraw from the EU.
 SHOULD BRITAIN
REMAIN OR LEAVE?
 Free trade within the EU reduces barriers and
enables UK companies to grow.
 EU better equips Britain to tackle threats to
security,including terrorism and cross-border
crimes.
 European businesses invest billions of pounds
in the UK.
 Consumers in Britain saves hundreds each
year thanks to lower prices of goods and
services.
 Sharing of intelligence information among EU
countries is possible.
 Britain doesnot use the euro, so even if that
currency goes bust it would be OK anyway.
 Being in the EU gives Britain more power in
the world as we’re part of an influential club.
 We would still be able to trade with other
European Countries even after exit.
 Lots of EU countries are struggling
financially.Being part of EU means we have to
support them.
 Being a member of EU needs to follow EU Laws
and makes us less free to do what we want.
 Britain contributes billions of pounds in
membership fee to EU which immediate cost
benefit of 8.5bn Pounds.
 Britain should have the right to set their own
immigration rules.
 Britain customs and traditions can be restored.
 The extremely bureaucratic nature of the
European parliament is hurting British exporters.
WHAT is the BREXIT DEAL? WHAT IS NO
DEAL BREXIT?
DEAL
• The deal consisted of a binding withdrawal agreement - which set out the terms for the
"divorce" process - and a non-binding political declaration on the nature of the future
relationship between the UK and EU.
• The withdrawal agreement covered a range of things including:
• the rights of EU citizens in the UK and British citizens in the EU
• how much money the UK was to pay the EU (widely thought to be £39bn)
• the backstop for the Irish border.
NO DEAL
• A no-deal Brexit would mean the UK leaving the European Union and cutting ties
immediately, with no agreement in place.
• The UK would follow World Trade Organization rules to trade with the EU and other
countries, while trying to negotiate free-trade deals.
POSSIBLE SCENARIO OF NEXT PHASE OF BREXIT
IMPACTS of NO DEAL BREXIT
1. The contents of your shopping basket may change
2. Importing goods from the EU may get more expensive
3. You will need to take extra measures when travelling to Europe
4. Estimated GDP Loss of 3.9%
5. Also affect FDI, Immigration and economic regulation in UK.
6. One in every ten UK jobs are linked to the trade with EU. Therefore Brexit affected their jobs.
7. Pound fell dramatically.
8. House prices could be affected.
9. Some ports and motorways could see extra delays.
10.UK students studying in the EU and EU students studying in the UK face a period of uncertainty.
IMPACTS of BREXIT ON INDIA
POSITIVE IMPACT
• India being more of an importing country
than an exporting nation, the overall effect
may turn out positive for India
• With lower pound value, Indian companies
may be able to acquire many hi-tech assets.
• Brexit might give a boost to trade ties
between India and the UK.
• More Indian students can afford to study in
Britain (for higher education) as the fees may
seem cheaper.
• Britain will need a steady inflow of talented
labour, and India fits the bill perfectly due to
its English-speaking population.
NEGATIVE IMPACT
• India will have to adjust to changing world
order.
• Due to fall in the value of Pound sterling,
Indian exports to the UK will suffer
• The falling value of the pound could render
several existing contracts loss-making.
• Sensex and Nifty may tumble in the short-
run. (Eg: Jaguar Land Rover is owned by the
Tata group)
• Existing Indian Companies availing the benefit
of EU will suffer.
Q & A Session