Introduction

Topic: Brexit

Team name: Team Morgan Stanley

Team members:
 Ronak Singodia

 Mahima Agarwal 3
 CONTENTS
• Introduction
o Introduction to United
Kingdom
o What is European Union?
o What is BREXIT?
• Reasons that led to brexit
• Pros & Cons Of Brexit
• Impacts of BREXIT
o Impact on Economy
o Impact on Trade
o Impact on Society
• Impact of BREXIT on INDIA
• Conclusion
Introduction to the United kingdom
 The actual name for the United kingdom is: The United Kingdom of
Great Britain and Northern Ireland

 It is an Island nation in the North West of Europe.

 The United Kingdom comprises the whole island of Great Britain—

which contains England, Wales, and Scotland.

 It also include the northern portion of the island of Ireland.

 Northern Ireland is the only part of the UK with a land border(with the
Republic of Ireland).

 The capital city of United kingdom is London.

 It has a monarchy, which means that it has a King/Queen.

 The United Kingdom has made significant contributions to the world

economy, especially in technology and industry
 European Union
 The EU is a unique economic and political partnership
between 28 European countries that together cover
much of the continent.
 It was formed in 1993 for the purpose of achieving
political and economic integration.
 The fundamental purposes of the European Union are to promote greater social, political
and economic harmony among the nations of Western Europe.
 The EU is a Economic And Political Union with the population of approximately 507.4 million
people.
 It is a Union with an economy that generates a nominal GDP of about $18.292 trillion (in 2019)
 What is BREXIT?
Brexit is an abbreviation for "British exit," referring to the UK's
decision of leaving the European Union (EU).
BRITISH + EXIT = BREXIT
.
 A public vote (known as a referendum)
was held in June 23,2016
when 17.4 million people opted for
Brexit.
This gave the Leave side 52%, compared
with 48% for Remain.
 The Brexit Polls Break up
UK
Constituents Exit Remain Final Verdict

England 53.4 46.6 Exit

Wales 52.5% 47.5% Exit

Ireland 44.2% 55.8% Remain

Scotland 38% 62% Remain

Total 52% 48% Exit

 Reason that led to BREXIT
 British wants reforms in European Union

 To make stronger trade deals with other nations.

 To control it’s national borders.

 To restore Britain’s special legal system.

 To make major savings for British consumers.

 To restore British customs and traditions.

 To improve the British economy and generate more jobs

 Above all a thinking that the country is being run by non representative institutions.
BREXIT – Pros & Cons
Pros:-
 Brexit may help the country experience immediate cost savings.

 Brexit would shift the emphasis of trade for Britain.

 Brexit establishes the sovereignty of Britain.

 Brexit offers the possibility of new jobs.

 Brexit would reduce the issues with forced immigration associated with the EU.

 Brexit could improve border security.

 Brexit could help to stop issues with bureaucracy.

 Brexit would create additional savings opportunities worth considering.

 Cons:-
 Brexit would eliminate protections of equal pay, maternity leave, and safe
workplaces.

 Brexit would change the perspective of Britain being the “gateway” to Europe.

 Brexit could create a labor shortage.

 Brexit could prevent the sharing of intelligence information.

 Brexit could reduce the amount of foreign direct investment that Britain receives.

 Brexit could still force Britain to be subject to EU laws and regulations.

IMPACT OF BREXIT
Impact of BREXIT
Impact on Economy
 Impact of Brexit could lead into lower GD of 2.2% in 2030
or hopefully into higher GDP of 1.6%.

 Leaving the EU also affected Foreign Direct Investment,

immigration and economic regulation in UK.

 One in every ten UK jobs are linked to the trade with the EU.
Therefore Brexit affected their jobs directly or indirectly.
 Impact On Trade
 Trading freely with the EU allows UK businesses to grow. Being able to
trade freely with the EU helps UK businesses grow and create jobs.
Therefore, leaving EU puts all this at risk.

 Four out of five UK small businesses say, access to EU markets is important

to their future growth, in case of UK leaving EU, these small business might
suffer losses.

 The pound fell dramatically after the Brexit vote at the end of June. It then
declined to a three-year low against the euro following Theresa May's
announcement that the UK would begin formal Brexit negotiations by the
end of March taking its fall from a pre-referendum rate of over 1.30 euros to
a low of 1.09 euros in October.
 Impact on Society
 Global financial market volatility can be readily expected. Markets across the
world will tank.

 The pound will depreciate against most major economies.

 Brexit could reduce economic growth by up to 5.6 percent over the next three years

 Being in European Union means lower prices for UK families, because it's cheaper to trade
and there’s more choice. Since UK left the EU, the cost of imports could rise by at least £11
billion leaving UK families out of pocket as prices rise.

 Independent experts estimate the benefits of being in the EU are worth £3,000 a year to the
average UK household - due to lower prices and more jobs, trade and investment. These were
all lost as UK left the EU.
IMPACT OF BREXIT ON
INDIA
 Impact of BREXIT on INDIA
 Sensex and Nifty will tumble in the short-run.
 India is presently the second biggest source of FDI (Foreign Direct
Investment) for Great Britain. But, if Britain exits the EU, it will not be as
attractive a destination for Indian FDI as before.
 UK has always acted as a gate pass for Indian companies to access the
European companies, The total trade stood at $14.02 billion in FY16, out
of which $8.83 billion was in exports and $5.19 was in imports.
 Brexit might also have a positive effect, but these results may not show
up immediately. The process might take time considering that the new
government will take time to design and implement their policies.

 So on the event of Brexit, the pound rate might fall against the dollar
and thus, the rupee.
 Indian Firms to look out for on the event of
Company Impact of Brexit
Brexit
Tata Steel Has turnover more than GBP 2 billion from UK Steel Plants. Has 12 production
plants spread across UK.

Tata Motors (Jaguar &Land Rover) Jaguar and land Rover are UK based and are UK’s largest automotive
manufacturers
Motherson Sumi Have major Automotive Clients in Europe and derives more than half of its income
from Europe
Kitex Garments Kitex Garments client Mothercare derives 20% of revenue from UK

Tata Consultancy Services For FY16, its Europe operation grew by 12.9% and UK by 8.23%. Europe and UK
together are major contributors to its revenue.

Bharat Forge Caters European automotive clients, Has 3 plants in Germany and 1 in UK

Tech Mahindra Has Banking and Financial Clients from UK, and acquired UK based firm Fintech

Bharat Airtel Has been rated by Grant Thornton as fastest growing Indian company in UK

Marksans Pharma UK and Europe market account for 60% of their revenue.
Emcure Pharma Has acquired UK based Tillomed Laboratories and still expanding
 Conclusion
 There were 17.4 million votes for “leave” (51.9%).

 There were 16.1 million votes for “remain”(48.1%).

 “Leave” won the highest share of the vote in England and Wales.

 “Remain” won the highest share of the vote in Scotland and Northern Ireland.

 On the whole the UK’s politics tend to be to the right of most EU countries and its
economics is more free-market oriented.
 Finally we come to the conclusion that BREXIT has damaging effects on the economic
development in the entire EU.

 It also caused some severe political damage and weakened Europe geopolitically.
 THANK YOU
Group Members
Ronak Singodia
Mahima Agarwal 3