by Naina Sharma
Brexit- a portmanteau of the words “Britain” and “exit”- is Britain’s split from the European Union, changing its relationship to the bloc on trade, security, and migration. If the move is approved, people from the rest of Europe would not be able to enter Britain without a visa, and vice versa and trade between European countries would become more complicated. Britain’s two main political parties are arguing over the nation’s withdrawal from the European Union, known as Brexit. The government is in crisis, they have not been able to agree on the country’s biggest decision in decades.
This decision has already lost the nation one prime minister, Theresa May, who resigned on 24th May, after she was unable to decide on a plan that her party and the European Union approved of. The Conservative Party have chosen Boris Johnson to replace the former prime minister, and handle the Brexit process. So far, Johnson is not doing a very good job.
Mr. Johnson insisted, that if need be he would remove Britain from the European Union, without a formal agreement, something that could cause international damage. This statement outraged many lawmakers, who in turn, seized control of the legislative process, and Boris Johnson lost his majority in Parliament. He responded by tossing out rebels from his party and he demanded a new general election.
Why is Brexit such a big deal? The rest of Europe is Britain’s key export market, its biggest source of foreign investment, and membership in the EU has helped London create its position as a global financial center. Theresa May had said that Brexit would end free movement, the right of people from elsewhere in Europe to live and work in Britain, and vice versa. That was good for some working-class people who see immigration as a threat to their jobs, but dream-crushing for young adults in Britain hoping to study or work abroad.
How does Brexit affect India? India is one of the top investors in the United Kingdom. Along with that, there are a large amount of Indian-owned companies in the country, employing so many people. Many Indian companies are listed on the London Stock Exchange and many have European headquarters in London. Brexit will take away this advantage. India does invest in companies in the UK, but Britain and Europe account for a vital amount of India’s Information Technology exports. The UK is the third-largest source of foreign direct investment in India and India’s largest G20 (Group of 20 summit) investor. India is a large source of Foreign Direct Information to the UK, in terms of numbers of projects. India invests more in the UK than in the rest of Europe combined. Due to a fall in the value of Pound sterling, Indian exports to the UK will suffer. Cheaper rupee will make Indian exports competitive.
There are many disadvantages and advantages, which will only occur once Brexit is finalized. With the deadline for withdrawal nearing, it seems the process is taking way too long, considering it has been in the making for many years. Nevertheless, undoing 46 years of an economic alliance in one snap is not easy. There are so many disadvantages that would land so many European countries in trouble if Brexit were to be approved. Naturally, Britain’s main parties are torn over what to do, leaving Parliament so divided, that there may be no plan that would get a majority.
The deadline for Britain’s removal is currently October 31st, and Boris Johnson insists he can cut a deal with the European Union before then. But time is running out.