A vote by the UK to leave the European Union in tomorrow's referendum would be unlikely to have much impact on India's economy. Indian exports to the UK are equivalent to less than 0.5% of GDP, so even a sharp slowdown in demand from the UK, which we think is unlikely in any case, would have a very small impact on Indian growth. What's more, given the narrowing in India's current account deficit and the rise in foreign exchange reserves over recent years, the economy looks well placed to weather any sudden shifts in global risk appetite in the event of a Brexit.
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