Finomenon Financials September-2016

Let me analyse and answer this question with geo political and socio-economic perspectives in view. Let us trace back to the period of 1945 to 1959. The original movement for united Europe was started with the aim of ending frequent and bloody wars between neighbours, which culminated in the Sec ond World War. Finally, it was formed through signing of The Maastricht Treaty on February 7, 1992. It is not even twenty-four years by now. The present war is not for of geographic area, but for more economic power and wealth maximisation.

From geo-political perspective I feel Brexit signals towards another era of crisis which may have its contagious adverse effects in other parts further destabilising the world economy. Symptoms are loud and clear. Even this may cast aspersions on the United Kingdom remaining united. In this mil lennium of globalisation, any geo political upheav al in any corner of the earth will for sure have im pacts on the world economy, particularly emerging ones like India. You all have heard about the ‘Coupling Effect’. More than thirty percent of Indi an economic activities are coupled with world. Therefore, any global slowdown casts both posi tive and negative impacts in varying degrees. For example, slump in crude oil impacted us positively but steel exports have badly been affected.

I personally feel Brexit will not have much of long term negative impacts on India. Barring initial skir mishes, our trading and economic relationshipsshould continue to remain almost the same, if not with some positives for exports as UK’s trade with EU members may slow down. On the other hand, the UK may also like to increase economic activi ties with India with better terms as her business with European partners will slow down.
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