Home / Knowledge / News / Textiles / How India could gain from Brexit
How India could gain from Brexit
20
Jul '16
Even as the immediate effect of Brexit is likely to be negative and affect Indian exports especially of textiles, clothing, machinery, auto ancillaries, and pharmaceuticals, it offers new growth opportunities for India, according to an analysis by a market research and consulting group.

Brexit creates future growth opportunities for India. A nimble UK may be in a better position to provide more tax concessions, financial incentives, and preferential treatments thereby giving a new thrust to Indo-UK trade ties, the impact analysis by Frost and Sullivan said.

Initially the impact on exports is likely to be negative as individuals, markets and businesses come to terms with the results and the new British leader kickstarts the process of withdrawal from the 28-nation bloc later this year.

Until the dust settles and a clear picture emerges, business entities are most likely to avoid risks resulting in currency volatility and a flight of foreign capital to safe havens and assets, the report said adding that lack of a precedent makes it difficult to predict the ultimate outcome.

Nonetheless, it suggested that in the medium term, India Inc. may revisit its European business plans and overhaul or calibrate them, as the case may require.

Although the region is not without opportunities, Indian manufacturers and service providers may have to adjust to lower demand in the UK, increased costs of operations including compliance requirements of two separate regulatory frameworks, and restrictions on mobility of employees across EU countries.

Indian investors with factories in the UK and the country acting as a gateway to Europe may rearrange their investment plans, resulting in a lower flow of foreign direct investments to the UK – India is the third biggest source of FDI for UK - and higher to the EU.

At a global level, increased political risks emanating from the fragmented UK, other EU exits, protectionist measures, and a weakened European economy might result in 'lost years', the report said but insisted that the impact of Brexit will not be felt in the same way and to the same degree by various sectors and countries.

For instance, withdrawal of subsidised rates for EU citizens in UK universities will open up funds to provide scholarships to students from other countries. Equally, it may lead the UK government to ease immigration rules for non-EU students. These welcoming conditions coupled with lower costs of higher education is likely to entice more Indian students to the UK and reverse the trend of falling admissions. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Courtesy: Trinity Kubassek from Pexels

Textiles | On 19th Aug 2018

Australian wool production to fall 5.7% in 2018-19

Shorn wool production in Australia is likely to fall by 5.7 per cent...

Courtesy: Next Level Apparel

Apparel/Garments | On 19th Aug 2018

Blue Point Capital recapitalises Next Level Apparel

Blue Point Capital Partners has recapitalised Next Level Apparel, a...

Retailers approaching 100% inventory accuracy: Study

Apparel/Garments | On 19th Aug 2018

Retailers approaching 100% inventory accuracy: Study

With computer vision use cases maturing, Artificial Intelligence (AI) ...

Interviews View All

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Sham Shah

Shamal and Shamal Pvt Ltd is into manufacturing and sales of textile...

Isabel Herranz
European School of Business & innovation

Cutting-edge ideas like the Internet of Things and artificial intelligence ...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Matthew Kolmes
Supreme Corporation

Supreme Corporation manufactures innovative specialty yarns and safety...

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


August 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search