Brexit: Ecnomic Affairs Sectretary Shaktikanta Das assured that India has enough "fire power" to deal with the situation.
Stating that the markets are seeing a spontaneous reaction over Brexit, Ecnomic Affairs Sectretary Shaktikanta Das assured that India has enough “fire power” to deal with the situation. “Markets are reacting sponteneously and will stabilise in a few days,” he said.
“We are prepared to deal with situation as it is emerging today. Government has discussed all possible eventualities of Brexit,” he said. “Government may accelerate growth programmes following UK’s Brexit decision,” he added.
Das cited India’s domestic fundamentals to reason that India will not suffer from any long-term impact of Brexit. “Look at our foreign exchange reserves. Inflation is also coming down,” he said.
Meanwhile, seeking to assure investors on Brexit, Finance Secretary Ashok Lavasa has said that the government and RBI are ready with measures to curb volatility.
Meanwhile, Banking Secretary Anjuly Duggal has said that he doesn’t see Brexit impacting India in the medium or long term. RBI has intervened in the forex market with liquidity support, as Brexit fears have seen rupee diving. Rupee plunged 74 paise against US dollar to 67.99 in early trade.
Watch: Britain decides to leave EU, impact so far
Sensex nose dived 940 points as leads showed ‘Leave’ camp ahead in ‘Brexit’ referendum vote, Nifty tanked as much as 281.50 points.
In a historic move, Britain seems to have voted to exit the European Union! Supporters of Brexit have seized the lead in the vote count from Britain’s bitterly contested referendum, setting sterling on track for its biggest ever fall on world markets.
The British currency fell as much nine percent to a 30-year-low below $1.35, marking a sharper dive even than on ‘Black Wednesday’ in 1992 when financier George Soros was instrumental in pushing the pound out of the Exchange Rate Mechanism that predated the euro.
(With inputs from Agencies)