With the global markets taking a huge blow from the impact of the United Kingdom voting itself to freedom from the European Union, Finance Minister Arun Jaitley on Friday said that the India economy was well prepared to deal with the short and medium term consequences of Brexit, adding that the Centre's aim will be to minimize its impact on the economy.
According to a statement released today, Jaitley said that India respected the referendum's verdict but at the same time was aware of its significance in the days ahead and also for the medium term
"As I have often said, in this globalized world, volatility and uncertainty are the new norms. This verdict will, obviously, further contribute to such volatility not least because its full implications for the UK, Europe and the rest of the world are still uncertain. All countries around the world will have to brace themselves for a period of possible turbulence while being watchful about, and alert to, the referendum's medium term impacts," Jaitley said.
Confident that the Indian economy can brace itself from the consequences of Brexit, the Finance Minister added that India remains committed to its macro-economic framework with its focus on maintaining stability.
Asserting that India stands out in terms of stability and growth, Jaitley added that India is amongst the fastest growing major economies in the world today
"The government and the Reserve Bank of India as well as other regulators are well prepared, and working closely together, to deal with any short term volatility. Our aim will be to smooth this volatility and minimize its impact on the economy in the short term. At the same time, for the medium term, we will steadfastly pursue our ambitious reform agenda-including early passage of the GST-that will help us realize our medium term growth potential of 8-9% and help achieve our objective of development for all," Jaitley said.
Meanwhile, Britain has voted in favour of Brexit with 52 percent of the voters backing the decision to leave the European Union so far.
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After the results many 'leave' campaigners were seen celebrating across the country.
The total voter turnout was around 72 percent.
The pound had already plummeted to its lowest level against the dollar in decades by the time the poll results were out.
Britain's decision to leave the European Union also brings Prime Minister David Cameron under immediate pressure to quit as the Prime Minister.