ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Pound’s depreciationSubscribe to Pound’s depreciation

Spoils of Brexit for India

Following the United Kingdom's exit from the European Union as a result of the recent referendum, Indian big capital is dismayed in anticipation of the contraction of the monolithic EU market. However, the focus must veer from the losses for big business to the gains for the average Indian. The pound's depreciation in the aftermath of Brexit can be helpful in combating domestic inflation in India. To some extent, Brexit is likely to put a brake on capital exodus and on brain drain from India to the UK. It would also mean cheaper and unrestrained arms trade between India and the UK. It makes the EU less weighty as a cohesive politico-economic bloc, thereby reducing its pooled leverage against India.

The British and the Euro

Two out of three of Britain's population, it seems, are opposed to joining the Euro. It is not at all clear why. Meanwhile the great events are being celebrated with solemnity and rejoicing elsewhere, a return to the Roman Empire (the last time Europe had a common currency), while the British sit outside the doors of the party, glum and resentful.
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