Let the alone UK, India will also face the effects of the Exit

So far many discussions have been centred on how all the Brexit matter will direct things for the UK in a new way may they be positive or negative. India is closely related to the UK for a long time so how can it be that it can easily escape the whole thing without any harm.

The Indian law ministry has become active to caution commerce ministry about what is going to happen. Whether a soft Brexit or a hard one, the effects will be there. But in case of soft exit at least the ties can remain so which any future deals with the EU of UK will decide.

But in case there is no deal between the two then the situation will become tense. This will make negotiations of India with EU more difficult. There are several advantages for India including cargo to India industry of the UK being a part of the EU and India has to lose them in any way.

The only advantage will be of having a direct dealing with the UK and there will be no restrictions from the EU that has to be followed and trade doors will be open in full capacity. But what about other matters that have to be settled side by side?

Why the concern?

The first and foremost issue is that there will be a limitation to the access of the Indian market to the EU market. The UK serves as a bridge between the two and many operations of India are done by using the UK land directly or indirectly.

So there has to be a new set up, new offices, and new deals and for them, negotiations have to start over again for new agreements. This will cause India to spend capital on the new infrastructure and manpower needed. All this does not go in favour of Indian trade. Another upsetting viewpoint is that this will cause the operational costs of Indian companies to ascend.

Which areas are going to be affected?

There are many products which get via the UK to the EU market and the trade remains smooth through those borders. Due to Brexit, the sectors like automobiles, auto parts, pharmaceuticals, education, IT, jewels and gems are all under threat of losing a large market.

Especially the currency value is going to differ and also the demand for the above commodities changes accordingly. A striking 800 company’s work in the UK and the country is an HQ for them, so imagine the restrictions going to follow after Brexit actually happen after two months almost.

A look at the optimistic approach

Although the above said pints are true if seen critically but then this is also true that the importance of India will increase further for the UK. As is a major direct investment source the UK will certainly try to magnetize India with some attractive deals.

This will, in turn, be an advantage to the country. Better deals and better opportunities can be a sigh of relief. But what is difficult to digest is to get attached to a single country leaving the 26 other; will this be a good idea?