Brexit: Impact on India

India plays an important role in Britain’s possible exit from the European Union (EU).

India is a first choice for British officials eager to find new markets when the U.K. leaves the European Union: Trade between the two countries last year was over $16 billion, and the U.K. has accounted for 9% of total foreign investment in India over the past 15 years.

Britain will need very strong trading ties with India’s largest markets. Finance and technology are two areas where the countries will likely be looking to deepen their cooperation.

India is looking for a huge amount of investments, especially in the Manufacturing and Infrastructure sectors.

Today U.K. being EU member prefer to buy from nearby EU low-cost countries like Romania, Ukraine, Slovenia, Slovakia, Bulgaria etc. (nearshore)

After Brexit, U.K. (as a non-EU country ) will prefer to buy from India ( Off shoring ) and this will also bring lot of investment & trade to India.

Brexit might also have a positive impact on Indian Economy but that will not show up immediately and the process will take a long time as the government will have to re-design and implement their strategies and policies.

Brexit will have a different impact on different sectors and it is believed that the effect will be short-lived, and in the long run it will be beneficial to India if we consider the holistic view.

India and Britain are of the opinion that Brexit will ultimately help the two countries strengthen their trade ties and emerge as each other’s valuable trade partner.

This also proves with the recent visit of British Prime Minister Theresa meeting Indian Prime Minister Mr.Narendra Modi and close ties signed between the countries.

 

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