Brexit is short for "British exit " .It refers to a vote taken on June 23, 2016, in which British voters voted to leave the European Union. The referendum turnout was 71.8%, with more than 30 million people voting. It was the highest turnout in a UK-wide vote since the 1992 general election The vote could have profound consequences for Britain, the EU, and the global economy. The referendum roiled global markets, including currencies, causing the British pound to fall to its lowest level in decades. Prime Minister David Cameron, who supported the UK remaining in the EU announced he would step down in October.
What's European Union?? The European Union - often known as the EU - is an economic and political partnership involving 28 European countries . It has since grown to become a "single market" allowing goods and people to move around, basically as if the member states were one country. It has its own currency, the euro, which is used by 19 of the member countries, its own parliament and it now sets rules in a wide range of areas - including on the environment, transport, consumer rights and even things such as mobile phones.
WHY DID THEY EXIT ??? Britain has been a member of the European Union (or its predecessor, the European Economic Community) since 1973. But a series of crises have shaken British confidence in the EU. 1.The European Central Bank’s disastrous handling of the post-2008 recession caused sky-high unemployment in Greece and Spain. 2.The Syrian refugee crisis tested Europe’s open-borders policy- The Immigration Issue. 3. The UK contributes 8.8 billion pounds to the EU budget at Brussels every year. This is a very big amount and resented by a lot of people, it could use the money effectively for further development of UK.IMPACT OF BREXIT 1.Brexit could also create big headaches for people moving between Britain and the continent. EU rules guarantee that EU citizens of one country can live and work in any other EU country. 2.Brexit will mean more paperwork and hassles — and some people could even lose their right to live in the UK and thus be deported. 3. The sectors that would be affected in UK will be education since it will be costlier and Companies having there headquarters will be required to pay more.
IMPACT OF BREXIT FOR INDIA.
1. The sudden increase in global risk aversion can impact the inflow from foreign portfolio investors (FPIs) to India.
2. India's technology sector may be affected clearly negative in the short term and harder to discern in the longer term .
However, The direct impact on the rest of the EU would also be significant. The export, supply chain, investment and policy interests of many large corporation's would be adversely affected, The greatest uncertainty associated with leaving the EU is that no country has ever done it before, so no one can predict the exact result.
