Finance Minister Arun Jaitley on Friday said India is well prepared to deal with the short and medium-term consequences of Brexit and continues to be a good option for investors.

Jaitley, who is on an official tour of China, stepped in to soothe domestic investors and talk up markets that are registering significant volatility after the UK referendum showed that a majority wanted to leave the European Union.

"Our macro-economic fundamentals are sound with a very comfortable external position, a rock-solid commitment to fiscal discipline, and declining inflation. Our immediate and medium-term firewalls are solid too in the form of a healthy reserves position," he said in a press statement, adding that the government and the Reserve Bank of India as well as other regulators are well prepared, and working closely together, to deal with any short-term volatility.

"Our aim will be to smooth this volatility and minimise its impact on the economy in the short term. At the same time, for the medium term, we will steadfastly pursue our ambitious reform agenda — including early passage of the GST — that will help us realise our medium-term growth potential of 8-9 per cent and help achieve our objective of development for all," he stressed, affirming the government's continued focus on economic reforms.

The Minister further said volatility and uncertainty are the new norms in the globalised world and all countries have to brace themselves for a period of possible turbulence while being watchful about, and alert to, the referendum’s medium-term impacts.

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