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Presented By: HRISHIKESH PATIL

Meaning
As the word Suggest BREXIT= Britain and Exit.

Withdrawal of the United Kingdom from the European


Union.

The UK electorate addressed the question again on


June 23, 2016, in a referendum on the country's
membership.
Impact On India If they Exit
Sensex and Nifty wil 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.
So on the event of Brexit, the pound rate might
fall against the dollar and thus, the rupee.

the companies which have income from UK and


Europe are going to be hit, at least for shorter
term.

Indian pharma industry which has more


exposure towards Europe, will also be affected.
UK EXPORTS AS % OF TOTAL INDIAN EXPORTS
% Contribution

40%

35% 34%

30%

25% 24%

20%

15%

10% 8%
6% 6%
5% 5% 5%
5% 4%
3%

0%
Textiles Machinery Jems & Auto Footwares Pharma Electric Iron & steel Lether Others
Jwells Appliances Products
Indian Firms to look out for on the event
of Brexit.
Company Impact of Brexit

Has turnover more than GBP 2 billion from UK Steel Plants. Has
Tata Steel
12 production plants spread across UK.

Jaguar and land Rover are UK based and are UKs largest
Tata Motors (Jaguar &Land Rover)
automotive manufacturers

For FY16, its Europe operation grew by 12.9% and UK by 8.23%.


Tata Consultancy Services
Europe and UK together are major contributors to its revenue.

Has Banking and Financial Clients from UK, and acquired UK


Tech Mahindra
based firm Fintech
Has been rated by Grant Thornton as fastest growing Indian
Bharat Airtel
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
Impact On Global Economy If they
Exit
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
What If. Britain Exits Or Stays

If Britain remain with EU Real GDP growth of 2.3% per annum


over the period to 2030.

If Britain leave Stock market falls, Debt interest rate rise.

Brexit could cost UK economy 100 billion Euro which is


equivalent to 5% of GDP by 2020.

9,50,000 Job losses and Unemployment would increase by


around 5,00,000.