BREXIT

&
Its impact

Summerthan: CHEAT CODE

 BREXIT

Britain In EU: A background Brexit: A reality

Was not the initial member of EEC in A term coined for Britains referendum
1957 which formed EU to exit the EU
Became a member in 1973 Held on 23rd June 2016
Had the first referendum in 1975 for 525,000 voted
staying in EU with a outcome of YES People of UK chose to leave EU (52: 48
Britains membership was always rocky percent

Whether UK should stay in EU?

Rationale for Yes Rationale for NO

Reduced cost of trade with other EU
countries
Estimated impact of 2-7% on UKs GDP
Fear of failing to strike liberal bilateral
trade deals me accentuate the impact
EU is UKs largest export market 40-45%
Impact Londons financial market
Britons feel that they are held back by
restrictions of EU
EU regulations cost Britain GBP 33.3 Bn
Take control of their border to stop
immigrants
Pays a membership fees of GBP 13
billion which can be saved significantly
if not a member
BREXIT- Impact on UK and EU
 BREXIT- Impact on India
Positive Impact
India is the third largest investor in Britain
After Brexit, Britain is likely to provide
bigger tax incentives to woo Indian
companies
Better Bilateral ties with India
India is third biggest exporter to UK
India to gain after Brexit as Britain will
further depend on India and China to
meet internal demands
Fall of Pound will help reduce the cost of
funds.
Access to UK market
Since strict EU restrictions are not there
India set to gain as liberal policies will help
increase trade
Lower cost of Education
Easy visa and cheaper education to
lure Indian students in UK
Negative Impact
Most visible impact is currency volatility
Indian companies have sizable presence in
UK which will bear the brunt, impact the
revenues
Dollar will appreciate against rupee due to
rising volatility in emerging markets
UK acted as a gateway to Europe for India
Indian companies used to setup base in UK
for accessing the European market
Now sizable investment and complexity
for Indian companies to access European
market
Increase in expenditure and risk for Indian
IT companies as they need to set up
separate teams for UK and EU
Slowdown in other major sectors like:
textiles and clothing, automobile
ancillaries, pharma and uncut diamonds
Uncertainty over future of EU and policies
across EU and UK
 BREXIT- Major Sectors and Companies Impacted
Companies Impact
Tata Steel Has turnover of morethan GBP 2 Billion from UK Steel plants,
12 production sites
Tata Motors (Jaguar & Land Rover) Jaguar & Land Rover UKs largest automobile manufacturers

Motherson Sumi Has major clients in Europe and UK (around 50%)

Tata Consultancy Services Europe and UK operations contribute a major chunk

Tech Mahindra Has major banking clients in Europe, acquired UK based firm
Fintech
Marksans Pharma UK and Europe market contribute 60% of revenue

Emcure Pharma Acquired Uk based firm Tillomed Labs

India's Export to UK 2016 India's Import to UK 2016

Textile 5% Instruments
24% 14% Machinary
Machinary

Jewellary 38.00% Finished Jewellary

46%
Auto & Ancillary Auto & Ancillary
8%
Pharma 29% Aluminium Article
6%
Iron & Steel Iron & Steel
6% 8%
4% 5% Others 4% Others
2%
Thank You