BREXIT
What is BREXIT?
BREXIT i.e BRitain EXIT is the exit of Britain from the European union (EU).
What is Britain?
UK consists of Countries such as Scotland, England, Wales forming the GREAT BRITAIN and if further Northern Ireland is included in Great Britain it forms the United Kingdom (UK).
What is European union (EU)?
It is the union of 28 European countries forming an economic and political partnership. The countries included in EU tend to avoid wars being the part of an union. The Market established among the countries is in the form of Single Market which allows the movement of goods, services and people i.e No restrictions and procedures are imposed to move between the countries which are part of EU.
UK: Part of EU
UK joined the European Economic community (EEC) in 1973. But in 1975 many political leaders opposed this and thus referendum regarding the stay of UK as a part of EU was given rise. The result for which was positive with the majority of people (68%) supporting UK to be the part of EU.
Later after years passed, in 2014 EU parliament elections United Kingdom Independence Party (UKIP) [a party which opposed UK being part of EU] came into the limelight. Whereas in 2015 UK elections the party gained 12% of votes in its favour. Here comes the Conservative Party which made a promise for referendum for the stay of UK in EU. Conservative Party mangaed to get majority of votes in favour against UKIP which increased the tenure of David Cameron as a Prime Minister of UK. As per the promise the party worked on.
Results of Referendum being: 51.9% Leave..... 48.1% Stay. After which David Cameron resigned and Theresa May was elected as new PM. Markets Collapsed.
Reason for the exit
There were few reasons which resulted BREXIT. Such as
1. EU used to charge billions of pounds as membership fees from UK.
2. Law making power was in the hands of EU and not alone for UK.
3. UK wanted to make a superstyle economy as Singapore based on London. As London is great Business hub for many countries. Many companies have ties in London.
Impact on India
1. Pound fell and Markets too Collapsed
2. Lose of close ally in EU
3. Difficulty in signing Free trade agreement (FTA) deals with EU
4. UK will try to search for new markets in India or other Asian countries
