Brexit is essentially an amalgamation of two words British Exit. The British Exit from the European Union is the dramatic reason behind the abbreviation “BREXIT.”
The European Union is a giant foundation that includes 28 countries out of 51 European countries. The European Union is the regulating body founded in the year 1957 for economic, political, and trade unions. It evolved over several decades, and the recent changes were made in the year 1992. It has two prime governing bodies: the European Council and the European Parliament, which are the regulatory bodies of the elected members of the European Union. In the year 2021, the EU is facilitated by the honor called the Nobel Peace Prize for providing protections to human rights, democracy, reconciliation, and the maintenance of peace and harmony all across Europe.
Recently, Greece left Citigroup’s Economists named the European Union and the exit as Grexit, and in replication of that, the British kept their exit from European Union as Brexit. The reasons behind leaving the European Union were that.
- The Investors do not evaluate the British as an individual wealthy and powerful country but as part of the EU, similar to other 27 countries, leading them to massive losses and under evaluation.
- They need to pay a lot of pounds every week as the depository of the EU, which results in the non-fulfillment of the country’s intimate tenders and development contracts. It does impact the exports and imports of the British because of the baggage of the bureaucratic pressures of the European Council and European Parliament.
- More than 50% of the council members supported the exit of the British from the European Union because of the losses they were bearing for years.
How does Brexit affect India?
Favorable consequences of British exiting the European Union on India
- The separation might result in the depletion of the British currency could be a favorable aspect for India.
- Job opportunities will be massive for the English-speaking population, where India is one of the highest producers.
- The influential exit of the British can result in commodity prices in the global market, and because of that, India can import more by paying lesser prices.
- It could also be the reason for the increase in global trade ties, especially between the United Kingdom and India.
- Amongst all other currencies in the European Union, the 19 countries preferred euros as the common currency out of the 28 countries associated with the EU out of 56 in total European cities.
- The citizenship or visa-related authorities could get easier and more likely to offer the acceptance of the Indian or Asian citizens will be manageable to acquire.
How is it unfavorable for India after all the above merits
- The fluctuation in the foreign currency could directly affect the FDI’s Foreign Direct Investments. The prices of crude oil, the gold rate, etc., could also fluctuate tremendously. That is definitely a loss-making event occurrence for India.
- Brexit could be a reason behind the disturbance in the global stock market like London Stock Exchange and dysfunctional for the National stock exchange and Bombay stock exchange.
- The tie-ups, deals, mergers, investments, etc., will also be affected due to the occurrence of the British exit from The European Union after being a loyal and active participant for 50 plus years.
- Most importantly, the Information Technology IT sector will be the prime target and victim of the occasion.
- Due to the deploying prices of Pounds, the returns on investments, and the franchises, the import prices will decrease, which means cheaper recoveries on the losses.
The impacts of the British Exit from the European Union called Brexit.
- The United Kingdom is the most renowned superpower and the prime trade ally of the European Union, so the UK is fine anyways whether someone is exiting or a place to enter the European Union, but the impact will be upon dominant export countries, and this will also influence the price of the pound.
- The United Kingdom is the greatest and most renowned power of the European Union, and the United States of America USA is the other loyalty holder similar to Greece and Britain, so after their exits, the USA is bearing losses along with the fear of losing the power and influence.
- A direct impact on Asian economies from Brexit is unlikely in the long term because, as a percentage of GDP, exports to the UK are less than 2% for most economies.
The Brexit has both positive and negative impacts on India and all the other superpowers of the Globe. Brexit is definitely a strong and risky step taken by the British to better its citizens and the country’s pride, strength, and sovereignty.