India well prepared to deal with short and medium term consequences of Brexit: FM Arun Jaitley

India is well prepared to deal with the short and medium term consequences of Brexit, finance minister Arun Jaitley has said highlighting the country’s strong fundamentals. “Our macro-economic fundamentals are sound with a very comfortable external position, a rock-solid commitment to fiscal discipline, and declining inflation. Our immediate and medium-term firewalls are solid too in the form of a healthy reserve position,” FM said in a statement. Jaitley is on a five-day visit to China.

He committed to continuing on this path.

“We are strongly committed to our macro-economic framework with its focus on maintaining stability.”

FM said India is an attractive investment destination because of its high growth and stability, seeking to allay concerns that investment flows could be hit.
“As investors look around the world for safe havens in these turbulent times, India stands out both in terms of stability and of growth,” FM said in the statement released by the finance ministry. “India, as you are all well aware, is amongst the fastest growing major economies in the world today. Our growth and inflation prospects are further improving in the wake of the good monsoons that are now moving well across India.”

FM admitted that the event will lead to volatility in financial markets.

“This verdict will, obviously, further contribute to such volatility not least because its full implications for the UK, Europe and the rest of the world are still uncertain. All countries around the world will have to brace themselves for a period of possible turbulence while being watchful about, and alert to, the referendum’s medium term impacts,” he said.