BREXIT and Impact On

Economy  Pallavi Mengar: P36

 Swarali Ghosalkar: P19
 Archana Rajput: P50
 Hiraman Thomare: P57
 Sanket Konapalkar: P34
 Kiran Vitekar: P59

Under the guidance of Professor Siddhesh Soman Sir

BREXIT
 What is BREXIT?

● The BREXIT is derived from the two

words 'Britain' and 'Exit'.
● It means UK Leaving the European
Union.
● So to understand BREXIT you will
first need to know what is European
Union (EU).
 What is EU?
● Several Countries of European Continent
have formed a group for economic and
political Partnership. This group is called as
European Union.

● EU Provides a Single Market which means,

that the member countries can easily do
Business with each other.

● EU rules guarantee that EU citizens of one

country can live, trade and work in any other
EU Country.
EU Consists of 27 countries
 BREXIT
 Britain 28th country of EU. But it left through 'EU
Referendum'

 EU Referendum: Referendum is when the a issue is solved

by the public voting. In 2015, David Cameron promised a
referendum on UK's exit.

Now Why UK Want to leave EU:

 So UK left EU because of the EU's business policies. They

were loosing billions of pounds.
What was the result of Voting:

on June 23, 2016 more than 30 million

people voted for EU Referendum. and
52% people voted in favor of BREXIT.
and after that president David Cameron
announced his resignation.

Now How Economy was affected by this ?

IMPACT
 IMPACT ON UK
● Post referendum impact on GDP
● UK experienced a loss of 2.5% of it’s GDP.
● A drop in Investments and rise in Unemployment.
● The pound Sterling fell to it’s lowest against the dollar since 1985.
● Trade
● Imposition of Tariffs on Imports
and Exports.
● Trade Rules under New Deal with the EU.
 IMPACT ON UK
● Effect on Companies
● No access to the EU market.
● Cannot employ from European Union.
● Movement of companies.

● Loss in jobs

● Restriction on free Movement of people.

 IMPACT ON UK
● Free Trade agreements with other nations.
● Various Tariffs and Non Tariffs were removed.
● Trade of Goods between member nations as well as other nations.
● Limit migration
● Most pressing Issue pressing nation.
● Introduction to New points based system ( Reduce overall
migration by control on borders)
● Top priority to those who are highly skilled workers.( no
opportunity to low skilled workers ).
 CURRENT SCENARIO
● Pound rate
● Pound held steady against the dollar @ US$ 1.36
● This proved to be consistent with modest expectations.
● On employment
● Divergence of employment laws between the UK and Ireland.
● Recognition of data.
● Transfer of employment data.
● On GDP
● Fall in GDP post Brexit was observed in UK .
 Impacts on India
● Some experts believed that the move of Brexit was an optimistic opportunity
of India. It will act as catalyst between the India and UK.
● While some believed that the Indian-owned companies in UK will be highly
affected.
● UK and India shares Good relationship and they have been top G20 investors
for the last 10 years.
 Impacts on India

 Cumbersome Transaction
 The expected Drop Of Pound
● Student Work Visa Rule
● Drop In Currencies
 Impacts on India
Stock Markets
● a downward trajectory was seen across global stock Markets but soon it
gained normalcy.
● With high uncertainty in the UK and EU stock markets, one can also expect
the India

2.Clarify migration and regulatory policy assumptions

Brexit opens up the possibility of changing migration policy, regulations and
trade arrangements with non-EU countries,
• Indian Business in UK faced a huge loss, since they had
Border free access to the rest of the Europe.
 Conclusion
In the modern world of Globalization, the tremors of a major change
in one of the countries can be sensed throughout the world. No one is
aware of what the future holds. Finance Ministry has stated that to
handle any impact, India has enough foreign exchange Reserves. It is
believed that India will be a net gainer once the everything settles,
with a higher rate of inflows.
Thank You 