ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Spoils of Brexit for India

Following the United Kingdom's exit from the European Union as a result of the recent referendum, Indian big capital is dismayed in anticipation of the contraction of the monolithic EU market. However, the focus must veer from the losses for big business to the gains for the average Indian. The pound's depreciation in the aftermath of Brexit can be helpful in combating domestic inflation in India. To some extent, Brexit is likely to put a brake on capital exodus and on brain drain from India to the UK. It would also mean cheaper and unrestrained arms trade between India and the UK. It makes the EU less weighty as a cohesive politico-economic bloc, thereby reducing its pooled leverage against India.

By the referendum held on 23 June 2016, the majority of the British people had democratically mandated in favour of the United Kingdom (UK) leaving the European Union (EU). An intriguing facet of the referendum, popularly dubbed as the Brexit referendum, was that in addition to the UK citizens, the citizens of the Commonwealth countries currently living in the UK with long-term UK visas were eligible to vote. Though much debate as well as cantankerous pettifoggery are inundating the press and social media following the outcome of the referendum, there has been only scant discussion about the benefits or damages of Brexit for the Commonwealth countries.

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