After 43 years in the European Union (EU), Britain has decided to exit the bloc. As the process of negotiating with the EU on the terms of withdrawal is likely to be a long one - almost two years - Britain will have to abide by EU treaties and laws till then. The separation will no doubt be messy.
Although the 51.9 per cent of people in the UK who voted for Brexit - over growing immigration and some other issues - would be a happy lot, they should not forget that Britain will now have to negotiate trade treaties and agreements almost from scratch with both the USA and the EU. The road ahead will be anything but smooth.
Of course, the EU will be in shock as no country has left the bloc since Article 50 of the Lisbon treaty - which enumerates how an EU member might leave the grouping - was framed. The EU will likely lose its global clout and threats of exit from the remaining 27 countries cannot be ruled out. Germany and France now have a strong role to play in the EU to keep all the 27 members together.
The Brexit impact on India may not be severe, considering that it is basically an import economy. But conglomerates such as Tata Group, which at present has 19 companies operating in the UK, will face serious consequences as there would be no free movement of goods in the EU any more. Tata Group will be forced to review its UK operations now.
Indian students and travellers to London will feel relieved, at least for some time, as their stay could get cheaper.
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Although the 51.9 per cent of people in the UK who voted for Brexit - over growing immigration and some other issues - would be a happy lot, they should not forget that Britain will now have to negotiate trade treaties and agreements almost from scratch with both the USA and the EU. The road ahead will be anything but smooth.
Of course, the EU will be in shock as no country has left the bloc since Article 50 of the Lisbon treaty - which enumerates how an EU member might leave the grouping - was framed. The EU will likely lose its global clout and threats of exit from the remaining 27 countries cannot be ruled out. Germany and France now have a strong role to play in the EU to keep all the 27 members together.
The Brexit impact on India may not be severe, considering that it is basically an import economy. But conglomerates such as Tata Group, which at present has 19 companies operating in the UK, will face serious consequences as there would be no free movement of goods in the EU any more. Tata Group will be forced to review its UK operations now.
Indian students and travellers to London will feel relieved, at least for some time, as their stay could get cheaper.
Bal Govind Noida
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201
E-mail: letters@bsmail.in
All letters must have a postal address and telephone number