So now it's all over the news that European Union and Britain will be separated in the coming years because britons voted to do so. There are great economic ups and downs for european countries as well as the british. The question now remains what are the complications to be faced by countries such as India ?. In the short run EU has been the biggest partner to britain in matters of business and economy, after the decision of such separation the british pound lost 10% of it's value already and this is a sign of more economic disasters to follow in the coming month.While David Cameron decided to leave his prime ministership it consequently made fragile the ability of britain to get a appreciative deal with EU and this could create serious problems for business based in the UK.Thereby, creating problems for Indian based companies in the UK. To understand this problem let's take an example suppose you are a Indian company based in the UK and you sell your products elsewhere in EU, now your product has to deal with laws of two specific countries or you can say has to meet standards of many class. ie- safety, size, content. So your company would have to sell two different products to of the same kind with slight variations in order to satisfy the policies of both UK and EU.To support the vantage viewpoint of downfall for business like above the findings of the UK government already do justice as they have predicted the downfall of the economy to be between 3.7% to 7.7% by 2030.At present, although India’s trade with the united kingdom has been shrinking for the past few years, its total trade with the island nation continues to be valued at $14.02 billion. These volumes could also be hit if Brexit goes through since india can ought to renegotiate its trade terms on an individual basis with Great Britain and therefore the EU.
The uncertainty over the value of british pound,will not just affect the rupee but also the international as well as Indian stock market.It is evident that India makes more investment in Britain than EU itself,according to a report by the external affairs ministry brexit could mess up those investments and also effect the operations of the companies which were invested upon. More than 850 Indian based firms have their operations in the UK. It would definitely mean changing business plans in the face of uncertain future economic touchdowns.Is it all bad news for India?.We don't think so!.Europe would be staring at the fastest-growing major economy within the world and would want to quickly resolve the unfinished trade problems with india so as to develop a long-lasting relationship. This probably means that India would have to face evens as wells as odds in the coming years because of the separation that has taken place. It would be too early to comment upon the fate of Indian economy on the account of the separation but at the same time it would be interesting to see what challenges and opportunities it brings for India.
