India says prepared to deal with impacts from Brexit

India said Friday it is well prepared for the impact to come from British decision to exit the European Union, saying it is working to deal with short term volatility in the market.

"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 minimize its impact on the economy in the short term," said Indian Finance Minister Arun Jaitley.

"At the same time, for the medium term, we will steadfastly pursue our ambitious reform agenda, including early passage of goods and services tax (bill) that will help us realize our medium term growth potential of 8-9 per cent and help achieve our objective of development for all," said the minister.

The governor of the Reserve Bank of India Raghuram Rajan said the central bank is continuously maintaining a close vigil on market developments, both domestically and internationally.

"(It) will take all steps, including providing liquidity support (both dollar and rupee), to ensure orderly conditions in financial markets," Rajan said.

All the 30 Sensex scripts at the Mumbai stock exchange were in the red at one point Friday. But by the end of the session some recovered.

The Indian rupee also fell to one dollar equaling 68 rupees Friday following news of the Brexit.

The Indian media reacted sharply to Brexit, saying it signals the rise of rightwing forces in western countries. Endit