In a historic development, Britain voted to leave the European Union, a decision which leaves the world's fifth-biggest economy facing deep uncertainty about its growth prospects and its attractiveness to investors, and which could hurt other economies in Europe and beyond.
Seeking to allay concerns over Brexit impact on India, the government expressed confidence that the economy will not suffer from any long-term impact of Britain's decision to leave EU and that it is prepared for all eventualities. Agreeing to the government's stance on the effect Brexit will have on the Indian economy, market analysts said there will be no direct impact on India.
Here are the top comments on the India impact of Britain's exit from the EU:
SBI chairman Arundhati Bhattacharya: “Uncertainty of any sort results in volatility and Brexit will be no exception. As risk aversion sets in, there would be a decline in financial markets and India would see this impact along with other nations. However as trade strategies are reworked there could be potential advantages in the form of better market access for India to EU & UK."
VC Sehgal, Chairman of Motherson Sumi: Commenting on Brexit and the panic caused by it in the Indian markets Sehgal said, "I think that we have seen a knee jerk reaction and there is huge job ahead to go out of Europe. There are many aspects which must be done and it will be almost two to three years as about 10 years ago there is clause which was inserted that if a country is set to leave then the Government has to extract itself on conditions which have to be agreed and as well other things. So as far as I am concerned it will be business as usual and as well I do not see any changes as England is still a part of the EU and does not cease to be because of a referendum."
A V Rajwade, senior currency consultant and commentator: "I don't see much of an impact on India or on the rupee. The impact is far higher on the UK itself. EU is our largest trading partner after China and US and trade with Britain is not substantial. Rather than Brexit, what matters more for the rupee now is who becomes the next RBI governor and what kind of policies he is going to follow."
Soumya Kanti Ghosh, chief economist SBI: Having a positive outlook on India impact of UK's decision to leave EU Ghosh said, "Brexit is good for India and rupee in the long run. India's trade with EU and Britain both will rise. England is perhaps the only country that has a dedicated minister to look only after India-Britain trade, this indicates that UK was anticipating Brexit and made preparations for increasing trade with India."
Rajeev Thakkar, CIO, PPFAS Mutual Fund: "Brexit will dominate the headlines for a few days till the attention of the world is diverted to some new event. Britain was never a part of the single currency and the impact on business fundamentals is expected to be at the margins. The knee-jerk reaction seems to be on account of the fact that most people expected a verdict of remain in the EU and the vote has turned out to be exit. Selective buy opportunities may emerge in the turmoil."
Raghuram Rajan: "Indian economy has good fundamentals, low short term external debt, and sizeable foreign reserves: Raghuram Rajan."
Arun Jaitley: Highlighting India's stable economy and strong reserves position Jaitley said, "India is well prepared to deal with the outcome of Britain's referendum on leaving the European Union. India is strongly committed to macro-economic stability, while its fundamentals were sound with "a very comfortable external position, a rock-solid commitment to fiscal discipline and declining inflation."
Jayant Sinha: "If Britain decides to leave, market adjustment process will happen and the government will provide liquidity in close collaboration with the leaders around the world," Minister of State for Finance Jayant Sinha told CNBC-TV18. He added that India still remains a haven of stability in a troubled world. He also said that contingency plans were already in place and that the government would implement them "once the market resets".
Shaktikanta Das: "Today, the exit (Brexit) looks like a distinct possibility. Right now, spontaneous reaction is happening on stock markets as something is happening against its expectations. Markets will stabilise over the next few days. The currency is depreciating, but government has been working to deal with the situation. Reserves in RBI are strong and solid. We have the firepower to deal with the situation. Our macroeconomic and fundamentals are strong," said Shaktikanta Das, secretary, Department of Economic Affairs.