About two weeks since Britain voted to exit the EU, Indian industry is gearing up to meet the situation. While a delegation of industry captains is set to make a trip to the UK, a survey has revealed that India’s investments in the UK will take a hit.
The Centre has already said the economy is well poised to deal with the situation based on strong fundamentals and robust foreign reserves.
The UK is the third largest investor in India with investments touching $22.21 billion during the period 2000-2015. India, on the other hand, invests more in the UK than the entire EU combined.
The survey also noted that while this is an opportune time to renew bilateral ties, it may lead to moderation in investments from India to UK during the transition period.
Talks for FTA The FICCI survey also said it may be meaningful to commence talks for a free trade agreement (FTA) with the UK now covering goods, services and investments.
“It is important that such an instrument is a hybrid agreement that incorporates the movement of people as a natural corollary to the movement of goods, capital and services so that the impact on mobility of professionals and on the ICT sector is not as negatively impacted as anticipated,” FICCI said.
Meanwhile, a delegation of industry leaders under the aegis of the Confederation of Indian Industry (CII) is visiting the UK from July 5-7 to explore new bilateral business opportunities.
“While Indian companies strategise for a post-EU membership scenario in the UK, huge opportunities await both sides. With India’s position as a stable economy enjoying the fastest growing GDP among large economies, UK-India cooperation in manufacturing, infrastructure, energy and technology sectors can be accelerated,” said CII in a statement.
CII-led team The team will be led by CII President Naushad Forbes, who will be accompanied by Rakesh Bharti Mittal of Bharti Enterprises, Sunil Kant Munjal of Hero MotoCorp and Ajay Piramal of Piramal Enterprises, among others.