Brexit results: India well prepared to deal with short and medium-term consequences, says Jaitley

24 June, New Delhi

Reacting to the Brexit referendum, Finance Minister Arun Jaitley Friday said, India is well prepared to deal with short and medium-term consequences of poll results.

He said, country’s immediate, medium-term firewalls are solid in form of healthy forex reserves. As far as short-term volatility is concerned, RBI is fully prepared to deal with any eventuality. He said, the economy is strongly committed to macroeconomic framework with rock solid commitment to fiscal discipline.

Reserve Bank of India Governor Raghuram Rajan also said that the central bank was watching markets closely and was ready to act if there was any disorderly behaviour.

Rajan added that markets are trying to factor the consequences of Brexit, which has already led to sharp corrections in financial markets around the world.

He assured that the Reserve Bank will take all necessary steps, including liquidity support, both dollar and rupee, to ensure orderly conditions in financial markets.

Economic Affairs Secretary Shaktikanta Das said that country’s trade, both import and export, are not going to be impacted significantly. He said, stock market is down on initial spontaneous reaction. He said Rupee depreciation is in line with other Asian currencies.

Finance Secretary Ashok Lavasa also said that government and RBI are ready with measures to curb volatility in the market.

External Affairs Ministry spokesperson said that the choice made by the British people on the EU referendum is now clear, and India values its multifaceted relationships with both the UK and the EU.

He added that India will strive to further strengthen these ties in the years ahead.

Swarup made the remarks in Tashkent as he is part of the delegation accompanying Prime Minister Narendra Modi for the Shanghai Cooperation Organisation (SCO).