While apprehending about the implications of BREXIT for the
World economy, Dr. Mahesh Gupta, President, PHD Chamber of Commerce and
Industry said no significant impact of BREXIT is seen on any sector of the
Indian Economy.
Though financial markets volatility cannot be ruled out, India’s
economic resilience has been strengthened on account of big bang economic
reforms undertaken by the Government to boost up investment sentiments in the
economy. Economic reforms have increased the resilience of the Indian economy
to mitigate the impact of adverse international economic developments, said Dr.
Gupta.
While releasing a report on BREXIT impact on
Indian economy (attached) prepared by the PHD Research Bureau, Dr. Mahesh
Gupta said that though lot of diversification has taken place in India’s
exports from advanced economies of Europe and America towards emerging and
developing economies of Asia, Africa and Middle East, EU is still India’s
significant trade partner and UK and Germany are among the top ten export
destinations of India and Germany is also in India’s top ten sources of
imports.
The pace of India-EU and India-UK exports and
imports will continue and achieving new growth trajectories in the coming
times. India-EU trade is expected to touch USD 100 billon in the next two years
by 2018 of which India-UK trade would post a USD 20 billion trade trajectory,
he said.
The investment inflows from EU to India will
remain steady as India’s growth trajectory would remain promising in the coming
times The inward FDI equity inflows from Europe are around 14.1% of
India’s top ten investing countries in the year 2015-16, said Dr. Gupta.
However, the report indicates that Britain's
exit from European Union can have several economic and financial implications
for the entire world economy. The
BREXIT has already resulted in financial markets volatility across the
world and could also spur a number of other risks through various
trade, finance and confidence channels.
The weakness in European economy could also hurt world exports
as weakening European currencies might put renewed downward pressure on major
exporting countries.
Despite adverse international economic developments during the
last many years, India is not only the fastest moving economy but its economic
share in the world GDP is also increasing at a significant pace from 1.77% in
2005 to 2.86% in the year 2015, said Dr. Gupta
Notwithstanding, the slowdown in the world economy; growth in
India remained robust, buoyed by strong investor sentiment and a recent fall in
international commodity prices. India posted a higher growth of 7.6% in 2015-16
as compared to 7.3% in 2014-15, 6.9% in 2013-14 and 5.1% in 2012-13.
We believe growth in India is expected to remain steady at 8% in
2016-17 on account of continuous pace of economic reforms and a good monsoon
scenario, said Dr. Mahesh Gupta
India-EU : Select economic indicators
|
S.No
|
Trade and Investment
Indicators
|
Share
|
|
1
|
Share of EU in
India’s total trade (2015-16)
|
13.75%
|
|
2
|
Share of EU in
India’s total exports (2015-16)
|
16.98%
|
|
3
|
Share of EU in
India’s Imports
(2015-16)
|
11.53%
|
|
4
|
Share of EU in
India’s FDI equity inflows (2015-16)
|
14.5%
|
|
5
|
EU countries in
India’s top ten export destinations
|
UK and Germany
|
|
6
|
EU countries in
India’s top ten sources of imports
|
Germany
|
|
7
|
Share of EU in
India’s top ten items of exports
|
15.53%
|
|
8
|
Share of EU in
India’s top ten sources of imports
|
9.43%
|
Source: PHD Research Bureau, compiled from various sources
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