India is a safe haven for investors amid the fallout of the UK's vote to leave the European Union, Brexit vote, Finance Minister Arun Jaitley said while replying to a question in the Lok Sabha this week.
He said India has not only avoided an adverse impact of Brexit, it has in fact emerged as a safe haven for investors around the world.
Jaitley, speaking at the lower house in the ongoing monsoon session of parliament, said that although the Indian rupee, the Sensex, and G-sec rates declined after the Brexit vote, on a cumulative basis, the rupee appreciated by 0.3 per cent on 19 July over 23 June (the Brexit voting day); the Sensex cumulatively rose by 2.9 per cent on 19 July over 23 June; and the G-sec rate also declined from 7.48 per cent to 7.28 per cent in the period.
"By virtue of its domestic policies, India is seen as a safe haven of stability and opportunity in these turbulent times," Jaitley said.
Compared to this, the indices of other developing and developed countries fell by a higher percentage for many days after the Brexit referendum, Jaitley said.
He maintained that while a slowdown in growth in the UK and EU after Brexit is likely to have an eventual impact on the country's exports, the effect will be offset by lower oil prices.
Going ahead, Jaitley said, new bilateral trade negotiations with the UK and the EU will be crucial for medium term growth.