Industry leaders predict gains for India

Pune: Veterans and leaders from the IT and manufacturing industry in the city said Britain's exit from the European Union (EU) may lead to uncertainty now, but open up opportunities later.

"The uncertainty would moderate over a period of time," said V S Parthasarathy, group chief finance officer of Mahindra Group.

Regional exports to the EU were 30% of its total exports outside, of which almost 50% was to the UK, said Sanjay Gupta, director of Software Technology Parks of India (STPI), Maharashtra & Goa. "With Brexit, fresh agreements would have to be made to continue doing business with the UK. The pound's devaluation will also affect business," he added.

Most industry captains said it would be prudent to wait. Vinni Mehta, director-general of Automotive Components Manufacturing Association, said, "It is too early to comment on the impact on Indian businesses in the UK."

Migration concerns have been over-egged, Vandana Saxena Poria OBE, said. "I am personally saddened that the people of the UK have chosen to exit from the EU. Staying within the EU gives far more intrinsic benefits than leaving does, in terms of access to countries and firms that British companies would never have had the opportunity to explore," she said. Poria is the chairperson of the British Business Group and non-executive director of the UK India Business Council.

As for the impact on the numerous businesses operating out of Pune, and Maharashtra, Poria said, "It will take over two years for the UK to fully extricate itself from the EU. Indian companies have the time to see what impact the decision will have."

Poria said the exit could actually help trade as the UK will not have to follow EU guidelines on incentives, subsidies and movement of labour. It may give Indians greater opportunities in previously restricted sectors, she added.


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