INSUBCONTINENT EXCLUSIVE:
Union (EU) on March 29 and concerns remain across the globe with the financial markets already jittery over the possibility of a no-deal
For India, experts say, Brexit might have a short-term adverse impact but benefits lie in the long run.So far, Brexit talks between England
and the EU have not been fruitful and there are concerns that Britain might have to leave the Union without a deal which may have severe
economic impact including a recession in England."..if there is Brexit without a deal then there could be short-term disruption while in the
long run, it makes the UK less dependent on the EU giving countries like India an opportunity to negotiate directly with the UK," said
March 2019 could offer opportunities for Indian exporters if bilateral trade agreements are renegotiated".Earlier, last year the Bank of
England had warned that a no-deal Brexit could send the pound plunging and trigger a worse recession than the financial crisis.Explaining
its impact on the domestic currency, Anindya Banerjee of Kotak Securities said that the no-deal Brexit will have a negative effect on the UK
first, it will impact Europe, US, and the emerging markets subsequently."An actual no-deal Brexit will impact the rupee only because of the
said Gaurang Somaiya of Motilal Oswal but as far as the rupee is concerned the impact will be short-term adding that the uncertainty around
Brexit is already affecting the currency market.Brexit has been identified as a major headwind owing to the strong investment relationship
as highlighted by Shaktikanta Das, RBI governor earlier this month, "Brexit is a factor that has repercussions for India's external sector
There are consequential policy challenges for India which enjoys strong trade and investment relations with the UK and the EU."Pointing out
India's strong trade relationship with the UK, Mayuresh Joshi commented that Britain is among the top trading partners for India both in
terms of inbound and outbound trade
In pure trade terms, UK ranks 12th in a trade with India but it is important because the UK is one of the seven large nations with whom
The UK also happens to be a very large market for India's software exports," says Mr Joshi."While the US continues to be the major partner
for India by a margin, UK and the EU region collectively account for nearly 30 per cent of India'' IT exports and UK apparently is the next
big market in terms of exports of pharmaceutical products from India," Mr Joshi added."Even in terms of FDI, India is the third largest FDI
investor in the UK and which is also the the third largest FDI investor in India
The relationship is largely symbiotic."According to a research note by Kotak, "Our checks indicate that clients are budgeting for a year of
a slowdown" owing to various factors like external headwinds emanating from a slowdown in the US, uncertainty around Brexit and trade
catastrophic implications for not just the European heartland, but for the wider developing world in general," said Natasha Mudhar, advisory
board member at the Commonwealth Enterprise and Investment Council (CWEIC).In a recent survey said Mudhar German Development Institute
