MUMBAI, 24 JUNE 2016: The British people have voted to exit from the European Union (EU). It needs to be viewed in perspective of the impact it will have on global business, as also viewed from an Indian perspective, The dooms-day predictions were out before the vote, and some of those may come true – but not all. The United Kingdom (UK) has effectively brought into focus the worry of globalisation impacting localisation – and the ‘learning’ from this will take some time to be properly understood.
Indian corporate entities having exposure to either the EU and /or the UK markets, in terms of trade or business located there, will in all probability, face challenging times
From an India-specific perspective, BREXIT will impact global commodity process as also impact volatility in global currency markets – with the results impacting the Indian economy as well. A large number of Indian companies operating across the European Union (EU) are based out of London, and the impact will be felt in terms of location-based shift in taxation advantages. We will probably see London’s commercial spaces getting impacted in terms of pricing, and for Indian real estate, the learning is on the aspect of closing down one’s market versus opening it up to global investments.
Niranjan Hiranandani is Founder & MD, Hiranandani Group. His recent initiative is Hiranandani Communities. He is the Founder and First President (Maharashtra), National Real Estate Development Council (NAREDCO), which works under the aegis of Ministry of Housing & Urban Poverty Alleviation, Government of India.