Britain's exit from European Union, or Brexit, may have sent shock waves around global markets, but all is not bad news as far as Indians are concerned.
Britain’s exit from European Union, or Brexit, may have sent shock waves around global markets, but all is not bad news as far as Indians are concerned. Yes, Brexit will impact you and me, and not everything is negative, you actually have reasons to cheer!
We take a look at 7 takeaways for Indians from Brexit:
1) UK real estate cheaper for Indian buyers: Indian investors may look at acquiring properties in UK, including in London, following devaluation of pound and fall in real estate prices due to Britain’s exit from European Union, property consultants said today.
“The British Pound is currently at a 31-year low, which itself provides an attractive rationale for foreign investors with an appetite to do so to acquire properties in the UK,” JLL India Country Head and Chairman Anuj Puri said.
2) Indian student community to gain: One major beneficiary of Brexit could be Indian students the United Kingdom or those who are planning to travel there for higher studies. The sharp plunge of over 9 per cent in the British Pound will make remittances cheaper for financing Indian students.
“The fall in the Pound is good news for the student community in UK since it would be favourable for sending remittances,” Sudarshan Motwani, Founder and CEO of BookMyForex said.
Indian student community is one of the largest overseas student group in the UK, which has been one of the favoured destination of higher studies and constitutes nearly 4 per cent of all internation students.
3) Jobs & employment opportunities: Brexit will help in creating job opportunities in India.
Dr Arun Singh, Lead Economist at Dun & Bradstreet India tells FE Online, “From a long term angle India will gain both in terms of labour. EU’s strict immigration laws are known. Once Britain exits EU, these laws will not apply and hence allow better labour movement and create job opportunities. From that point of view India would gain.”
4) Travelling to UK set to become cheaper for Indians: Travelling to United Kingdom for Indian travellers is set to become cheaper with Britain deciding on leaving the European Union (EU) after a referendum.
Anil Khandelwal, CFO, Cox & Kings Ltd said, “the pound has depreciated against the rupee. This would mean that travel to the UK will be cheaper for Indian travellers.
The British pound which took a hard hit on Friday slumped over 9 per cent against dollar to hit its lowest level since September 1985. British Pound slumped against Indian rupee by over 8 per cent to Rs 91.36 intra-day as Brexit as a reality emerged.
5) Gold may turn more expensive: Brexit has caused global investors to move to safe havens like gold, resulting in the yellow metal’s prices shooting up. This trend is likely to continue for some time, feel analysts, implying that buying gold may turn expensive for you.
6) Overall economic growth of India: DK Srivastava, Chief Policy Advisor at Ernst Young India told FE Online, “UK is likely to invest more in India, now that it has moved away from the EU. India is a great investment destination from the emerging markets perspective and in that way more inflows will be beneficial for the economic growth. This will in turn trickle down to benefit common man; be it indirectly or directly in the form of infrastructure investments from Britain.”
7) Brexit to affect Goans living in UK on Portuguese passports: Britain voting to leave the European Union would affect the whole world economically and especially the Goans working in Britain as they would now be treated as foreign nationals despite having a Portuguese passport, Goa NRI commissioner Wilfred Mesquita said.