Brexit will benefit India's tech firms, skilled people

After the completion of Brexit process in December, several industry associations, including exporters’ body FIEO, demanded greater trade relations with the UK, including finalisation of an India-UK free trade agreement (FTA), writes ETV Bharat's Deputy News Editor, Krishnanand Tripathi.

New Delhi: The UK’s decision to leave the European Union will be beneficial for India, as the UK will forge new trade relations after the completion of Brexit process that will open new opportunities for India’s tech companies and skilled professionals as they will benefit from an easier visa regime, two UK based experts told ETV Bharat.

In January 2020, after 47 years of joining the bloc, the UK quit the European Union and EU Atomic Energy Committee and after completion of one year transition period, the country also exited from the EU Customs Union and EU Single Market in December last year.

After the completion of Brexit process in December, several industry associations, including exporters’ body FIEO, demanded greater trade relations with the UK, including finalisation of an India-UK free trade agreement (FTA).

“In a post Brexit world, our analysis indicates that optimism is looking good for the future,” said Chandru K Iyer, head of South Asia business development of Grant Thornton, UK.

“When we see Indian companies doing business in UK market post Brexit world, we see that in technology sector, people's movement is going to become a lot more easier which will help the technology sector grow,” Iyer told audience in response to a question by ETV Bharat in a programme organised by Mumbai based fintech firm EPS India.

Iyer says post-Brexit UK is going to be more open in terms of applying the visa under a point based system which will help Indian professionals to come to the country with much more ease.

“That will help the technology sector,” he told ETV Bharat.

Lord Rami Ranger, a Indian origin businessman in the UK and a member of House of Lords, says a point based visa system will favour Indian talent as the preference given to immigrants from other EU countries under the earlier rules is no longer applicable.

In response to a question by ETV Bharat, Lord Rami Ranger said UK’s membership of the European Union led to a large number of immigrants coming to the UK from economically less developed Union members, which created problems in the country.

“We have seen nearly 5 million people have come to live in the UK since we joined the EU but we haven't increased houses by 5 million and there is no provision for schools, hospitals and other services,” he told ETV Bharat.

“It pushes the wages down because people are willing to take any jobs. It damages your social structure as there is more racism as people start resenting,” Lord Rami Ranger explained, saying that a country like the UK could not control its destiny as it could not control its border as part of the bloc.

“With the Brexit, we now can bring people we need. India is poised to supply the best doctors, best engineers and best IT people,” he said, adding that now the immigrants will have to demonstrate that they are worthy for the job in comparison with the earlier system in which immigrants from other EU countries were given preference.

“Lot more Indians will come as they are highly motivated and experienced people,” he added.

High-level visits from UK

Chandru K Iyer says UK Prime Minister Boris Johnson’s India visit in April will further boost trade and investment relations between the two countries as several high-level UK officials have already visited India in preparation of Boris Johnson’s India visit.

“Liz Truss, UK’s secretary of international trade visited India in February, Alok Sharma was there in early March as director general of COP26,” Iyer told ETV Bharat.

Lord Tariq Ahmad, Minister of State for South Asia and the Commonwealth in the UK Foreign, Commonwealth and Development Office (FCDO), also visited India last month as part of a series of visits before UK PM Boris Johnshon's maiden India visit later this month.

Iyer says these visits by senior UK officials reflect a lot about what is happening in the post-Brexit world from British perspective and the country is taking India very seriously.

“Relationship is going to evolve to the next level much sooner than later. British Prime Minister Boris Johnson's India visit in April is going to be a watershed moment,” said Iyer.

Prime Minister Johnson was to visit India in January this year as chief guest of Republic Day functions but due to a sharp increase in Corona infections in the UK before the visit, it has been rescheduled to April this year.

It is the first major overseas visit of the UK Prime Minister after the country’s exit from the European Union.