Our concerns here are focused on the direct and indirect impact on the Indian economy from a potential slowdown in the eurozone. The uncertainty that will likely unfold in the major EU countries and especially the eurozone will add to the headwinds for a recovery in India’s exports. Brexit, therefore, offers India a great opportunity to ask the difficult but much-needed question: what are India’s top macro-economic policy priorities? The Indian economy has seen its total exports decline for 18 straight months, hurt by an overvalued exchange rate as well as a weak global economy. For now, the growth risks in the Indian economy are tilted to the downside.

Source: Mint July 03, 2016 19:07 UTC