On March 29, the UK will be separated from the European Union. It would be interesting to see whether the two sides arrive at a new agreement or not. Although not expected to reach an agreement, it is unlikely, but if this happens then, the destructive consequences of the UK’s economy may have to be suffered, about which business giants have warned. Not only the UK but also the European Union’s largest economy, Germany may have to endure a considerable loss, with many of its product’s market Britain.
India also has a good eye on the UK’s departure from the European Union. In recent years, many companies making huge investments in the UK are concerned about Brexit. Britain was seen as the main gate to enter the European Union. Due to being a common market, companies could enter seamlessly in European countries.
800 Indian companies turnover in the UK
About 800 Indian companies are operating in the UK, from which over 1.10 lakh people are employed. Half of these people work in the Tata Group’s five companies. The Tata group is among the largest foreign investors in the UK.
Pound’s share of income in large part
In the last few years, many companies like Rolta, Bharti Airtel, and Aegis Outsourcing have run their foot in the UK. These companies, which are trading in the UK, account for about 13 percent of their income in the form of British currency, even if they talk about the European Union, this figure is 30 percent. Indian companies have invested heavily in the pharma sector in the UK. Brexit is definitely bad news for them. Due to the expected weakness in pounds, these companies will have a huge impact on the income.
Worry about socio-political consequences
Many Indians are worried about the socio-political implications of Brexit. In the vast majority of the Indians and other South Asian people voted in favor of Brexit because the politicians had promised them that they would simplify the migration of talent from the former Commonwealth countries. For example, the owners of Indian restaurants were guaranteed that they would be able to bring more chefs after Britain was separated from the European Union.