Brexit: Goodbye, globalisation

We live in peculiar times, we are talking about a world that is one, a world where literally a generation of people don’t particularly identify themselves with a country or so we had thought – a world of "global citizens," where ideas travels across continents, where technology has transcended all boundaries and borders.

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A product today is most likely conceptualised in a country, its various components are sourced from several other countries and it is finally assembled in another country.

Trade, society and economies ought to be open to ideas to thrive.

Britain voting for an exit from the European Union is compelled by its own domestic reasons but the domino effect it will have on the Union, as it were, will dramatically alter the world as we know it.

If other disgruntled members of the EU decide to opt out too, it will restrict free movement of people within the Union. It will mean renegotiation of trade contracts and treaties, thus making trading with EU cumbersome.

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Countries will have to spend billions in becoming compliant with a post-Brexit world.

For India, transaction cost will go up tremendously if there is a shake-up in the EU.

India has used Britain as a gateway to Europe and has emerged as the third largest FDI source for UK.

As traders anxiously await a new set of details for trade with UK, they are also painfully aware that we are now entering a more nationalistic, protectionist world.