India safe haven for investors amid Brexit fallout: Arun Jaitley

India is a safe haven for investors amid the fallout of the Brexit vote, Finance Minister Arun Jaitley said while replying to a question in the Lok Sabha this week. He said, India not only avoided an adverse impact of Brexit, it has in fact emerged as a safe haven for investors around the world. 

Jaitley, while speaking at the Lower House in the ongoing monsoon session of the Parliament, said that although the Indian rupee, the Sensex, and G-sec rate declined after Britain's vote to leave the European Union but on a cumilative basis, the rupee appreciated by 0.3% on July 19 over June 23 (Brexit day); the Sensex cumulatively rose by 2.9% on July 19 over June 23; and the G-sec rate also declined from 7.48% to 7.28% in the period.

"By virtue of its domestic policies, India is seen as a save 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. 

However, he maintained that a slowdown in growth in the UK and EU after Brexit is likely to have an eventual impact on the country's exports but 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.