Brexit may just be good news for Indians in UK

Can Brexit open up new areas of opportunity for India and the UK? While it might still be too early to predict how things will pan out between India and the United Kingdom, they don't look as bleak for India as they do for the EU.

In fact, if UKIP (UK Independent Party) leader Nigel Farage is anyone to go by, Indians might find the UK more welcoming.

In a recent interview he was quoted as saying, "I have to confess I do have a slight preference. I do think, naturally, that people from India and Australia are in some ways more likely to speak English, understand common law and have a connection with this country than some people that come perhaps from countries that haven't fully recovered from being behind the Iron Curtain."

Prime Minister Narendra Modi had told a press conference in London last year that India considered the UK to be a gateway to Europe, indicating his preference for the 'Remain' camp. But the 'Leave' verdict could give India, the third largest investor in the UK, greater operating room in a country with which India has shared a historically warm relationship.

Rajya Sabha MP Swapan Dasgupta is among those who believe that India should utilise the opportunity to forge a more meaningful partnership with Britain.

"It was a vote against an uncaring super state and uber cosmopolitanism. Yet, Brexit offers great opportunities to engage with a UK that is bound to become economically more free. If India gets into the act without delay, it may be possible to negotiate a mutually beneficial FTA that had become impossible under the EU.

he UK can remain India's foremost trading outpost in the West. Brexit signals new opportunities for India and Indians."

India's official reaction, however, was much more guarded and cautious. An external affairs ministry spokesperson said, "We value our multifaceted relationships with both the UK and the EU and will strive to further strengthen these ties in the years ahead."

Brexit will undoubtedly have huge implications for the EU project and nobody can say for certain if London will retain its position as the premier financial capital.
But there are some genuine worries also. What if Indian companies relocate to a country like, say, Ireland, as the new gateway to the EU?

That might cloud bilateral economic prospects which currently give India a position of some importance in the UK as evidenced by the British government's decision to intervene with labour unions after Tata Steel announced its exit.

Image credit: Indiatimes