India prepared to deal with short and medium term consequences of Brexit, says FM Arun Jaitley

Britain’s vote to leave European Union (EU) has left the entire global markets in a shock. The after effects of this shock will be felt for the coming time, especially in the UK.

In a statement issued within minutes of the results of the UK referendum on EU membership were final, Jaitley said that India has healthy forex reserves and is well prepared to deal with the short and medium term consequences of Brexit. The Indian economy has strong fundamentals and is well placed to counter volatility arising from Britain’s exit from the European Union, FM said.

The immediate consequence of the Britain’s EU exit is volatile economic situation. Apart from this, the full implications of Brexit are still unclear as what would be its long term repercussions.

FM in a statement said, as regards, the Indian economy, we are well prepared to deal with the short and medium term consequences of Brexit. We are strongly committed to our macro-economic framework with its focus on maintaining stability. Our macro-economic fundamentals are sound with a very comfortable external position, a rock-solid commitment to fiscal discipline, and declining inflation. Our immediate and medium-term firewalls are solid too in the form of a healthy reserve position.

As investors look around the world for safe havens in these turbulent times, India stands out both in terms of stability and of growth. India, as you are all well aware, is amongst the fastest growing major economies in the world today. Our growth and inflation prospects are further improving in the wake of the good monsoons that are now moving well across India. Meanwhile, commodities markets have already started emulating the global trends and gold prices are on a surge as the investors turn towards safe heaven asset like gold. It is widely known that gold is the go-to commodity in the times of economic crisis.