The auto parts industry is forecast as the most vulnerable as Europe accounts for almost 25% of all exports and the UK accounts for 5%. However, Crisil maintains that the headwinds from Europe and UK is unlikely to have an impact on India’s growth projection of 7.9%. In a 27 June report titled, Brexit impact on India limited, Crisil Ltd said that the impact on Indian companies will be in the way of demand weakness, volatility in commodity prices, currency impact and the balance sheet impact on account of exposure to unhedged borrowings. The UK accounts for 3% of merchandise exports from India and 2% of the total trade (Imports + exports). Pharma companies that have a higher exposure to EU will feel some impact, Crisil says while adding that Europe accounts for around 12% of pharma exports from India.

Source: Mint June 27, 2016 13:18 UTC