{"id":56332,"date":"2020-03-02T10:56:12","date_gmt":"2020-03-02T05:26:12","guid":{"rendered":"https:\/\/blogadmin.forumias.com\/?page_id=56332"},"modified":"2020-03-02T10:56:14","modified_gmt":"2020-03-02T05:26:14","slug":"answered-brexit-provides-an-opportunity-for-both-britain-and-india-to-work-for-common-interests-and-resolving-various-issues-comment","status":"publish","type":"page","link":"https:\/\/forumias.com\/blog\/answered-brexit-provides-an-opportunity-for-both-britain-and-india-to-work-for-common-interests-and-resolving-various-issues-comment\/","title":{"rendered":"[Answered] Brexit provides an opportunity for both Britain and India to work for common interests and resolving various issues. Comment."},"content":{"rendered":"\n
\n Demand of the question<\/strong>\n Introduction.\n <\/strong>Contextual introduction.\n Body.\n <\/strong>Discuss various post-Brexit opportunities and\n challenges for India.\n Conclusion.\n <\/strong>Way forward.\n <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Brexit is a term being used for Britain\u2019s\nexit from the European Union. Both Britain and India share an age-old history\nof common interests and values and with India growing fast, the relations\nbetween the two countries can reach new heights post Brexit. The UK is India\u2019s\n5th<\/sup> largest trading partner and provides great opportunities\nfor India to develop stronger relations with Britain, post-Brexit.<\/p>\n\n\n\n

Post-Brexit\nopportunities:<\/strong><\/p>\n\n\n\n

  1. Stronger Trade ties<\/strong>: Brexit provides a fresh opportunity to India to\nstrengthen its economic relationship with the UK through an India-UK free trade\nagreement (FTA). A study carried out by the Commonwealth Secretariat after the\nBrexit vote has identified 13 new products which India can export to the UK. It\nhas estimated market access of around $2 billion for these products. A well\nnegotiated bilateral trade arrangement between the UK and India has the\npotential to increase bilateral trade by 26%. <\/li>
  2. Foreign Direct Investments (FDI): <\/strong>Indian government has considerably liberalised\nthe FDI regime in the country and there has been an increase in FDI inflows\nover the last two years. India is expected to get continued attention from the\ninvestors including investments from the UK. The UK is the third largest\ninvestor in India and accounts for about 8.0% of the total FDI inflows in the\ncountry. Several British companies have exhibited interests in India post\nlaunch of the Make in India campaign.<\/li>
  3. Boost Immigration from India:<\/strong> The UK is experiencing a great\nshortfall in skilled manpower. Brexit\nwould provide a new opportunity for the Indian professionals to look for the\nwork options in the UK.  <\/li>
  4. Cheaper Pound Sterling:<\/strong> The British pound is among the most\nexpensive currencies in the world. The cheaper UK currency would likely boost\nexports from India as an alternative to the overpriced Eurozone. Indian students could pay less for the rupee\nconversion and for the Indian tourists UK travel could become much more\naffordable.<\/li>
  5. Education Sector: <\/strong>Britain’s exit from the EU is expected to open up\nsignificant business and economic opportunities for the Indian Education\nSector. Education in the UK\nwill likely become more affordable. For Indian students studying in the UK,\nBrexit might result in a more level playing field compared with other EU\nstudents who hitherto had an informal edge over the rest of the world in the\njob market. India being one of the largest skilled labour markets, with a\npopulation well versed in the English Language could have a distinct advantage.<\/li>
  6. Agricultural opportunities:<\/strong> Key opportunities for Indian companies,\npost-Brexit could arise in the food and agro products sector, since the UK is a\nnet importer of food and food products from the EU. Indian exporters would need\nto comply with the regulatory framework and accompanying phytosanitary requirements,\ndepending naturally on what framework the UK adopts. <\/li><\/ol>\n\n\n\n

    Some\nchallenges: <\/strong><\/p>\n\n\n\n

    1. Depreciation of Pound: <\/strong>India businesses have presence in a wide array\nof sectors in the UK which include automobiles, auto components,\npharmaceuticals, gems and jewellery, education and IT enabled services. Most of\nthese sectors will be vulnerable to changes in demand and currency values. The\ndepreciating Pound will impact the revenue stream of companies over the near\nterm.<\/li>
    2. Potential loss of market access in EU:<\/strong> Many of the largest Indian employers operate in\nthe services sector, which will be seriously impacted. Businesses in the UK might be treated as third\ncountry service providers by the EU, with potential loss of market access and\nincrease in non-tariff barriers.<\/li>
    3. Impact on garment industry:<\/strong> Readymade garments are one of the key export\nitems to the UK from India. It accounts for about 20% of India\u2019s total exports\nto the UK. The sector is expected to feel the pinch on account of moderation in\ndemand. <\/li>
    4. Loss of jobs: <\/strong>India is one of the largest exporters of IT-enabled\nservices and the sector has significant exposure to the European market\nespecially the UK. The UK\naccounts for about 17% of India\u2019s total IT exports. IT companies thus are\nexpected to face the heat in light of Brexit. Given the risk of further\nmoderation in growth in the UK and EU, there is an increased probability that\nthe companies lower their IT budgets and many may lose their jobs. <\/li><\/ol>\n\n\n\n

      Brexit does provide an opportunity to\nexpand India\u2019s trade and economic relations with the UK. Much will depend on\nthe fine print of Brexit and the ensuing negotiations. The challenges that\nBrexit throws up have to be addressed before an India-UK FTA becomes a reality.\nEven though the Indian economy may be in better shape than a post-Brexit UK, we\nwill need to leverage our strengths so that the complementarities in our\neconomies are harnessed. We need to work towards a win-win situation so that we\nare able to translate adversity into an opportunity for mutual prosperity. <\/p>\n","protected":false},"excerpt":{"rendered":"

      Demand of the question Introduction. Contextual introduction. Body. Discuss various post-Brexit opportunities and challenges for India. Conclusion. Way forward. Brexit is a term being used for Britain\u2019s exit from the European Union. Both Britain and India share an age-old history of common interests and values and with India growing fast, the relations between the two… Continue reading [Answered] Brexit provides an opportunity for both Britain and India to work for common interests and resolving various issues. Comment.<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"open","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-56332","page","type-page","status-publish","hentry","entry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/56332","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=56332"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/56332\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=56332"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}