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

Bangladesh apparel exports jump 20% in July–Oct 2018

Apparel/Garments | On 19th Nov 2018

Bangladesh apparel exports jump 20% in July–Oct 2018

Readymade garment exports from Bangladesh increased by 20.08 per cent ...

95% Britishers want shopping centres for all: Hammerson

Apparel/Garments | On 19th Nov 2018

95% Britishers want shopping centres for all: Hammerson

As many as 95 per cent of British people feel that shopping centres...

Courtesy: Hyosung

Textiles | On 19th Nov 2018

Hyosung leading global market with creora

Hyosung is leading the global market with ‘creora’, the brand name of ...

Interviews View All

Shiladitya K Joshi, Truetzschler India Private Limited

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Abhishek Ganguly, Puma India

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Amardeep Singh, Orient Craft

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Riddhi Jain,

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Abhishek Pachauri,

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Suresh P Bagrecha,

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Razvan Popescu, Directa Plus SpA

Razvan Popescu
Directa Plus SpA

Directa Plus is one of the largest producers and suppliers worldwide of...

Kerem Durdag, Biovation II LLC

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Paige Mullis, Glen Raven Inc

Paige Mullis
Glen Raven Inc

Paige Mullis discusses the expansion plans of Glen Raven Inc in India, and ...

Adriano Goldschmied, AG Jeans

Adriano Goldschmied
AG Jeans

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

Hemant & Nandita, Hemant & Nandita

Hemant & Nandita
Hemant & Nandita

The designer duo of Hemant & Nandita are known for being inspired by...

Prathyusha Garimella, Prathyusha Garimella

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

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


November 2018

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

news category


Related Categories:

Advanced Search