The result of UK election, which threw up a hung Parliament with the ruling Conservative party failing to muster a simple majority, will add to geopolitical uncertainty and increase risks for global businesses including India Inc, industry body Assocham said today. “Prime Minister Theresa May losing majority for her Conservative party in British Parliament, just days ahead of the scheduled negotiations on the Brexit with the European Union would mean more uncertainties for a host of sectors like financial services, visa policies, trade and services like IT.
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“Besides, there would be volatility in the foreign exchange markets in the short term, at least,” said Assocham Secretary General D S Rawat. He said if one adds the outcome of the UK election to what is happening in the US and the impact being felt on the Indian businesses, mainly IT and geo-political, uncertainties are on the higher side. May, who is now facing mounting pressure to resign, had called the polls three years ahead of schedule hoping to boost her negotiating powers during the complex Brexit talks. The Brexit talks were set to begin on June 19, but the election result – a sort of turnaround in fortunes for both major political parties – have thrown that timetable into doubt.