Engineering exporters, who are already reeling under a sharp drop in exports, are not worried about the Brexit impact. They say the present turmoil could be a transitory phenomenon till things settle down in the U.K. and the continent.
“While initially the markets reacted, the dollar has stabilised for now and there has been about seven per cent appreciation in the British Pound, as a result of cross-movements. The future of engineering exports would depend upon what the next stages of Brexit will be, which remains unclear as of now,” an official at Engineering Exports Promotion Council (EEPC) said, adding that the impact on India would largely be neutralised if “our economic policy remains stable and continues to be based on sound macroeconomic foundations. The nature of economic policies followed by the British Government and the adjustment that happens will determine what the future holds.”
However, given that the Indian share in both U.K. as also EU engineering imports is relatively low, it is unlikely that in the medium to long term there will be an impact.
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