The United Kingdom has become the first independent nation to break away from the 28-member European Union as 51.9% Britons voted in favour of an exit from the block in a referendum held yesterday. Drastic changes are already happening like the pound collapsing to its lowest level against the dollar since 1985 and global markets also tumbled as the trend started firming in favour of Brexit.
Stating that uncertainty is not good for industry in general, and currency movements are going to be unpredictable at this point of time, he said one does not know now whether this is going to trigger a cascading set of reactions.
“So, in the short term, this uncertainty is not good for industry and it will be negative for IT industry too because of the uncertainty,” the former President of Confederation of Indian Industry told PTI.
“Having said that, may be in the medium-term, a lot of these changes would trigger changes in IT systems. That means some additional business for IT. In the short-term and probably in the medium term, this uncertainty is not going to be good for the IT industry,” the Chairman of Axilor Ventures said.
It should be noted that The UK leads Europe’s tech sector, with the country boasting 18 of the EU’s 47 private tech companies valued at more than $1 billion, which are also known as unicorns. Nearly two-thirds of respondents to Juniper’s survey said they think the tech industry would suffer as a result of reduced funding from the EU for the UK tech sector and that London would be less attractive as a tech hub.