June 24, 2016 will remain in history. And whether for good or bad reasons, which is something that only the future can show us. Indians, until now, were in the UK not interested in voting from the European Union. But looks like today, we must take an interest in a case that happened in Britain, but to change the world in the coming years.
The campaign of Britain to leave the EU, is the largest yet and it must have enough momentum for a referendum collected. Leave campaign argued that the UK is a big deal to lose by staying in the EU: it must pay millions of pounds a week as a contribution to the EU budget; the ultra-bureaucratic character of the evil British exporters European Parliament; and finally that uncontrolled immigration to the European Union in the UK is an imbalance in the social institutions of the British government to provide.
Brexit may impact Indian IT in short term, But good for long term. Here are the five ways India will be affected by Brexit.
India currently has the second largest foreign direct investment in the UK. Historically, Indian companies setup their factories in the UK so that they could sell their products in the rest of Europe in the European free market system. Since UK left the EU, it is no more attractive destination for Indian companies like before. This might hurt Indian companies. After UK’s exit, Indian companies can expect a deregulated and competitive market in the UK than before.
2Uncertainty after Brexit:
The biggest impact of the Brexit is that they have not planned out the future plans. There is no plan sound to the future relations of Great Britain with the EU or other specific countries within the EU. Will they continue to have access to the European markets? Are increase trade barriers when they leave? Are there agreements with the EU with respect to the movement of goods, capital and labor? These are important questions that remain unanswered by those who advocate Britain to leave the EU.
3Possibility of Another EU Partner
So far UK was gateway to Europe for Indian companies. After Britain’s exit, India need to look for tie up with another country in European Union, which will be beneficial in long term. India is already in process of negotiations with countries like Netherlands, France, Germany
4More Immigration Opportunities
After Britain cutting ties with the European Union, Britain will be desperate to find new trade partners and new source of labor and capital. Many in Britain suggest that UK should look towards the Commonwealth countries to form new alliances. Britain will need a continuous inflow of talented work force, and India fits perfectly in this criteria due to its large English-speaking population. With migration from mainland Europe slowing down, UK will open immigration from other countries, which will benefit India immensely.
5Better Ties with European Union:
With or without a Brexit, it is in Europe’s interest to develop India as a strong strategic and trade partner. But, Brexit would surely accelerate this process with E countries. EU will need to counterbalance US and China geopolitically. To achieve this, EU would be looking at the fastest-growing economy in the world like India. They will need to resolve the pending trade issues with India quickly in order to develop a better relationship.
Conculsion, Even if UK suffer from leaving European Union in terms drop in GDP andf reduced trade, it will certainly benefit India in long run.