Brexit will add to global headwinds for world trade: EEPC

KOLKATA: Seeking to “wait and watch”, the engineering exporters’ body EEPC India today said exit of Britain from the European Union will add to the global headwinds for the world trade.

" Though drop in Indian rupee may appear to be a good development for Indian exporters, the turmoil in the entire basket of global currencies as a result of Brexit, would bring in more currency risks and could prove disastrous for the world trade. While INR has depreciated against US dollar, it is appreciating against Pound Sterling and Euro", EEPC India Chairman Mr T S Bhasin said, hoping Indian government and the RBI are keeping a close watch on the developments to mitigate the risks.

He said, it is too early to predict the long term impact, but in the short term, the situation looks quite uncertain, as the markets tend to over-react. However, EU being the most important trading partner, ripples could be felt , he said.