The Brexit Circus

The Brexit Circus: What you need to know here in India Part 1

No better way to encompass everything that’s been going on with regards to the UK and its split from the EU than the word circus. There’s people juggling, there are people roaring, there are people crying and pretending to smile, and there are people smiling and pretending to cry.

Before I get on with my rant, I might as well add that since there’s so much of garbage and fear mongering happening by media outlets across the world, the best option for eager followers of Brexit (for whatever reasons ranging from plans to move to the UK, or if you’re like me and your work deals with British finance on an intimate level) then the best option is to keep track of a combination of 4 types of sources; news channels, opinion articles, and immigration discussion boards 

Yes, that is indeed the only way for you to have a more or less accurate picture of what’s going on in the UK these days and how good or bad things are really looking. And speaking of opinion articles, here’s mine J

What I intend to do is provide a list of all the consequences that this process of negotiation between the UK and the EU are leading up to; in the UK and all the nations connected. Since I am just getting the hang of blogging, I am going to use some blogger friends’ advice and provide the information in a list format as supposedly you readers find that more convenient. So here goes!

Why should you care about Brexit here in India? (10 today, 10 next week)

If any of the below listed consequences affect you in any way, then you know that you should care about Brexit and keep up with this blog for regular updates! If not, well you have some good general knowledge to read for today J

(Disclaimer: Keep in mind that a lot of these points regarding India are regarding the short term. IF things pan out in certain ways, then India should come off in a strong position in the long run after Brexit.) 

1)      There might be a rise in the US dollar value thanks to the fund outflows from the UK

2)      The Indian Ruppee may drop in value bcause of the the dual effect of fund outflows and rise in Dollar value.

3)      This in turn may lead to an increase in Petrol and Diesel Prices.

4)      Prices of gold, electronic goods, and other things might also increase.

5)      There might be a short term tumble in the Sensex and Nifty.

6)      Falling value of the GBP (Great Britain Pound) could render several existing contracts with UK based firms as loss making.

7)      Foreign funds might also move out of India if the above mentioned fluctuations creates a perception of risk towards investment in India.

8)      India’s Forex (currently a record 363 Billion Dollars) may diminish, particularly if the currency     is stored in Euros or Pounds (which accounts for about 20% of the total Forex)

9)      There would be a short term negative impact on the $108 Billion IT industry of India.

10)   All the Indian companies listed in the London Stock Exchange and those which have their headquarters in London, might suffer.

I have made an extremely long, detailed list of all the possible consequences of Brexit for Indian corporations as well as individual investors. However, I would like to put those out in my article next Sunday. This is due to the fact that the coming week might be very exciting in terms of the course Theresa May’s government takes with regards to Brexit, and also how it would lead to global confidence I the UK and the EU.

As always a special shout out to my friends and colleagues: A very belated Happy Birthday to my dear friends Divya and Sebin! May all your wishes come true.

And lastly (my blog wouldn’t be complete if I didn’t say this), a big big congratulations to the Indian Cricket Team for DOMINATING in Australia!!

In the meantime, if you would like to have a brief summary of the Brexit happenings in 2019, have a look at this summary video put together by Siddhant Menon: 

Stay tuned till next Sunday for part 2 of the consequence of Brexit to Indian investors, corporations and individuals. Leave your email below and I shall keep you updated every time there is something new I think about, and hence write about!