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EFFECT OF BREXIT ON EUROPEAN ECONOMY
As the word Suggest BREXIT= “Britain” and
Withdrawal of the United Kingdom from the
The UK electorate will address the question
again on June 23, 2016, in a referendum on the
The EU is a unique economic and political partnership between 28 European countries that
together cover much of the continent.
In 1973 the UK joined to the European Economic Community.
In 1993 the European Union was formed.
In 2002 the Euro became the currency of Euro zone.
The fundamental purposes of the European Union are to promote greater social, political and
economic harmony among the nations of Western Europe.
REASONS FOR BREXIT FROM
EU Britain wants reforms in European union.
Link between immigration and EU membership.
The UK tax payers money goes directly into European union.
The relative health of the UK economy.
The European union regulation cost UK businesses over 600 million euro every week.
Britain’s loss of full authority over its economic policies and regulations .
IMPACT OF BREXIT
OVERALL ECONOMIC IMPACT
BUSINESS AND FINANCIAL SERVICES .
ENERGY AND CLIMATE CHANGE.
HUMAN RIGHTS .
Impact On India If they Exit
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.
INFORMATION TECHNOLOGY .
Indian Companies 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 12 production plants
spread across UK.
Tata Motors (Jaguar &Land Rover)
Jaguar and land Rover are UK based and are UK’s largest automotive
Have major Automotive Clients in Europe and derives more than half of its income
Kitex Garments Kitex Garments client Mothercare derives 20% of revenue from UK
Tata Consultancy Services
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
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
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
9,50,000 Job losses and Unemployment would increase by around 5,00,000.
we come to the conclusion that a Brexit would have damaging effects on the economic
development in the entire EU. The economic consequences of leaving the EU will depend on
what policies the UK adopt following brexit
The much discussed ARTICLE 50 of the EU charter states that once a member nation chooses to
“activate” it, that nation shall have no more than 24 months to finalize every single detail
revolving its exit from the EU.
effectively announced that the UK will be out of its limited EU partnership/presence before the
end of March 2019.