FM Arun Jaitley’s Statement on UK’s Brexit Referendum

Following the final vote of the people of the United Kingdom in the referendum on whether to remain or leave the European Union, the Finance Minister Arun Jaitley said, “We respect the referendum’s verdict. At the same time, we are also 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." he added.

The FM further said, 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.

Speaking about the Indian Indian economy following this verdict he said India is well prepared to deal with the short and medium term consequences of Brexit.  India is strongly committed to the macro-economic framework with its focus on maintaining stability.

He also added the macro-economic fundamentals are sound with a very comfortable external position, a rock-solid commitment to fiscal discipline, and declining inflation. The immediate and medium-term firewalls are solid too in the form of a healthy reserve position.

Arun Jaitley said as investors look around the world for safe havens in these turbulent times, India stands out both in terms of stability and of growth.

His statement also says India, as all well aware, is amongst the fastest growing major economies in the world today. The growth and inflation prospects are further improving in the wake of the good monsoons that are now moving well across India.

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, he added.

Finance minister concluded by saying the 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, the ministry will steadfastly pursue its ambitious reform agenda—including early passage of the GST—that will help India realize the medium term growth potential of 8-9% and help achieve the objective of development for all.