Impact of EU-UK Brexit Deal in India
The transition of the UK out of the European Union is about to get completed on December 31, 2020, with the end of the withdrawal agreement. India is expected to gain from this EU-UK Brexit deal.
Key Points
- It is likely that India will benefit from the UK-EU Brexit deal as now there will be restrictions on the free movement of professionals between the two markets.
- As per the Brexit deal, UK nationals have restrictions on studying, living, and starting a business in the EU and vice versa. Now, there are certain restrictions that had to be followed.
- However, there will be no change in goods and services.
- If there has been a restriction on goods movement also, India would have benefitted a lot.
- This can present a chance for India as now Indian exporters to the EU and UK markets will not have to meet different standards for the two markets.
- Thus, the major gain for India is in the services sector.
- Also, now India has the opportunity to sign separate deals with the EU and the UK.
Background
The United Kingdom decided to leave the European Union and voted in a referendum in the year 2016. As a result of the referendum (52% in favor of exit and 48% against leaving), it was finally decided that the UK will leave the EU, becoming the first country to do so. After various negotiations since 2016, UK finally left the EU on 1st February 2020 but agreed on the withdrawal agreement before the final transition on December 31, 2020.