Even though the Government of India and economists are saying that India is all prepared to deal with the short term and medium term impacts of Britain’s exit from European Union (EU), the exporters such as textile and handicrafts, are deeply concerned about the impact on the export orders already placed.
According to the President of the Textile Association of India, Arvind Sinha, the major impact of Brexit will be on booked export orders of textile and handicrafts because both the currencies will be affected due to Brexit. Both the currencies - Euro and Pound - will be affected and business will be affected as realisation is going down, he observed.
Sinha added that the situation would be good as industrialisation will take place in Britain and employment has to be created. The flexibility of EU will go and for textile sector, it is a good thing.
Sinha further explained that, whatever business we are doing now that is generally in Euro but the large companies which trade in pound will be affected whether the pound will crash as it is already going down. Pound will go down by at least 15-20 per cent.
Whereas, the Vice Chairman of Export Promotion Council of India (EPCH) Rajesh Kumar Jain opined that handicraft sector has to face the direct loss of around 10 per cent now and same would increase to 15 per cent if euro and pound to go down. Handicraft and textile would be affected majorly due to this certain change.
Meanwhile, Finance Minister Arun Jaitley said that India is well prepared to deal with short and medium-term consequences of Brexit.