BREXIT AND ITS EFFECT ON INDIA

BREXIT AND ITS EFFECT ON INDIA

 Ninaad Deshmukh

 Maharashtra National Law University, Mumbai

In what might be considered one of the most important events in the history of mankind, the United Kingdom (UK) finally left the European Union (EU) on 31st January 2020. Britain has had a troubled relationship with the EU since the beginning and has made various attempts in the past to break away from it. Thus, the current scenario, termed Brexit – an abbreviation of “British Exit” from the EU – was a long-awaited historical move. It will certainly bring about important changes in the policies and politics of the remaining 27 European Union members states, but the most significant amount of change is expected in the policies and political structure of the UK It becomes important to see how this will shift the policymaking process worldwide and the ways in which nations will choose to tackle it.

Even though countries like India are not part of the EU and would supposedly have nothing to do with it, the level of globalization we have achieved is enough to metaphorically convert the world into one big village. Hence, the actions of one section now affect the entire village in one way or another. Although it is premature to assess the gains for India from the agreement between the European Union (EU) and the UK, Indian goods would not get much benefit from this pact. However, India now has the chance to explore opportunities in service sectors like IT, architecture, research and development and engineering in both the markets as the EU-UK pact does not cover services.

Also, as the UK is the 3rd largest source of Foreign Direct Investment (FDI) in India, and is also its largest G20 investor, the Brexit deal will have a significant ripple effect back in India. According to experts, while Brexit paves way for a free trade agreement (FTA) between New Delhi and London, it might take the sheen away from India’s planned FTA with the EU. India had a lot of contentious issues while negotiating FTA with the EU. However, after Brexit, the UK could have a different stand on those issues and now India can pursue separate FTA talks again, with different stands as regards to both the regions.

On the other hand, Indian companies, many of which have invested heavily in the UK are likely to be quite severely impacted by a no-deal Brexit, particularly those companies that use the UK as a gateway to the European Union and Europe in general. Even companies that do not have a significant exposure to the EU will feel the impact as a no-deal Brexit will lead to a perceptible economic downturn in the UK. Major investors like the TATA group are already hedging their bets and have started exploring alternatives.

But, irrespective of the situation, UK has clearly identified India as a major partner, more particularly so in the post-Brexit era. The focus on India by successive British Prime Ministers and other key ministers is a testimony to the value attached to India as a major trading and investment partner. With the expiry of the Bilateral Investment Treaty in March 2017 and the absence of a Free Trade Treaty, the imperative to conclude an India-UK FTA is apparent particularly after Brexit. Both sides at the highest political level have committed themselves to conclude an FTA as soon as possible. However, such an FTA could only have been signed after the UK left the EU. The floor is now officially open, but while both countries have their own wish lists, the parameters of a bilateral FTA will still more or less be predicated on the terms and conditions of the UK’s exit from the EU.

As such, even with a slight bit of uncertainty, it can be said with a fair amount of confidence that India is going to reap in significant long-term benefits from Brexit. Key opportunities for Indian companies are bound to arise in the food and agro products sector, since the UK is a net importer of food and food products from the EU. Further, India’s services sector is likely to make gains from the curbs on the free movement of professionals between the two markets. According to the Brexit trade and security deal, UK nationals will no longer have unrestricted freedom to work, study, start a business or live in the EU and vice versa, although both sides will have tariff-free and quota-free access to each other’s market. Thus, with separate policies, there are high chances that services like IT, Finance, R&D etc. will get the opportunity to establish an even more solid foothold in both the regions.

On a comparatively non-economic perspective, the separation has given rise to a new immigration policy in the UK, which brings in better conditions for Indian students as well as other persons who wish to migrate to the country. The new immigration policy is going to benefit skilled Indians exploring job opportunities in the United Kingdom. Freelancers or self-employed workers will also not be much affected by it. The aim behind this is to achieve a ‘high skill, high wage and high productivity economy’. As for the students, the step taken, called the “graduate” route was passed for a mutual benefit of the UK and International students. It states that all International students – with a special mention of India in this context – who have a valid immigration status to the UK as a student and have completed an undergraduate or higher course from an approved ‘UK Higher Education Provider’ shall be permitted to stay for two more years after completing their course to look for job opportunities and work. The aim is to retain and recruit the best and brightest government talent from across the globe. This will not only help for an easier transition both to people who wish to live in the UK and those who want be able to study and gain work experience in the country.

These are just some of the benefits that India can or will have, from the 1,246 page UK-EU Brexit deal. Brexit does definitely provide an opportunity to expand India’s trade and economic relations with the UK. Hence, even with the challenges associated with the separation, we need to work towards a win-win situation for both countries so that we are able to translate adversity into an opportunity for mutual prosperity. As such, one can put their faith in the belief that once the storm passes, India will still be standing, and will be in a better position than it was in before.

Leave a Reply

Articles

Amarose Skin Tag Remover (Updated Reviews) Reviews and Ingredients

Amarose Skin Tag Remover fixing benefits are reasonably picked skin succeeding and skin flaw transport off. Notwithstanding, overall clearly glaring sign of Amarose Skin Tag Remover is that it shows that better than various things do the very same thing at long last keeping itself and endeavors that can hamper you goliath store of money and […]

Read More
Articles

Amarose Skin Tag Remover Reviews (Pros and Cons) Is It Scam Or Trusted?

Amarose Skin Tag Remover fixingbenefits are sensibly centered around skin wellbeing and skin flaw expulsion.Nonetheless, the most incredibly glaring mark of Amarose Skin Tag Remover isthat it shows that better than different items do exactly the same thingeventually contrasting itself and medical procedures that can set you back hugeload of cash and is agonizing in the […]

Read More
Articles

vMail EDB to PST Converter smartly recovers Exchange database from edb file

Today I’m letting you know our experience in my limited nevertheless I’ve found a way that vMail Exchange EDB Recovery Software is capable of exchanging data recovery jobs that are most gracefully. It supports the export of mailboxes to PSTs and also possesses a range this is certainly considerable of options. It’s a data recovery […]

Read More