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Dear Readers,
As we all know that nowadays,Brexitis all over the news. As a referendum is going to happen on 23rd of June which
will decide the fate of Britain. Whether it will exit from the European Union or not. So guys let's know more about it.
Like What is Brexit? What is a referendum? What is EU? Why Brexit? and more important What will be the impact of
Brexit on India? So here we go
What is 'Brexit'?
Brexit is an abbreviation of"British exit"which is used to explained a possibility of UK coming out of EU. It is a word
that used as a shorthand way of saying the UK leaving the EU merging the words Britain and exit to get Brexit. So
basically, It's the issue of whether Britain should exit the European Union or not a question that will be decided in a
historicreferendum on June 23.
For the first time,Lisbon treaty added the provision article no. 50 which provide a member exit from the EU. As per
this provision any country which wants to come out of the Union, it has to negotiate a deal with EU. It implies thatit
is not very easy to come out of EU. When a country opting out of the EU the settlement issue between EU and UK.
So yes if Brexit wins then there is going to be a selloff and shortterm pain, but in the long term Indian markets would
be relatively stable compared to other markets.
To conclude:
If it happens, will have the longterm economic impact of Brexit is hard to discern, but the shortterm disruption
while the UK negotiates and renegotiates is only likely to be bad news for both sterling and Euro assets. But it is
almost impossible to predict the outcome. We will have to wait till June 23rd to know the future of EU and Britain.