India is focusing on the market dislocations arising from a likely British referendum vote to leave the European Union, minister of state for finance Jayant Sinha said on Friday, saying it was too early to assess the trade impact.
“There’s going to be market dislocation and we are going to have to focus on that,” Sinha told news channel ET Now in the first official comment on the UK plebiscite.
India’s benchmark stock indexes opened down three per cent. Listed companies with exposure to Britain suffered the heaviest losses with Tata Motors tanking nearly 10%.
“Full impact of Brexit will be seen in 2018” says commerce secretary
“We do not have any bilateral trade agreement with EU, but since we trade bilaterally with various countries we do not see any immediate impact on trade. However, what we now need to watch is how EU and UK negotiate the exit conditions” Rita Teaotia commerce secretary told HT.
The commerce secretary added that, “Since under the terms and conditions EU has a two year window for any country to negotiate and make a complete exit. So the exact impact of Brexit will be seen in 2018. In short term currency volatility may be there but that the government will tackle.”