What is Brexit and does it have any sort of relation to our Indian Economy? Brexit is an abbreviation of two English words: 'Britain' and 'exit'. The Brexit withdrawal agreement, officially titled Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy. Brexit will directly impact not only the Indian stock market but the global market in totality, including the emerging markets in the world. This is because of the high volatility in the pound. Both the U.K. and EU account for 23.7% of the Rupee's effective exchange rate. With Brexit, foreign portfolio investments will outflow and will lead to the weakening of the rupee. India's businesses based in the U.K. will be hampered as till now they had border-free access to the rest of Europe. The investors are concerned as India invests more in United Kingdom than the rest of Europe combined.

Dency Varghese

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