Impact of EU-UK Brexit Deal in India

India is to emerge as the net-gainer from the Brexit deal recently signed between the European Union and United Kingdom.

Impact on India

  • The gains for India from the EU-UK Brexit deal are mainly in the service sector. This is because, the UK currencies are becoming cheaper. Therefore, it will be less expensive for the Indian firms, especially the service sectors offering more incentives such as easy regulations, tax breaks and opening up markets.
  • Also, Brexit opens new opportunities for India to sign trade deals separately with EU and UK. India has been trying to sign Bilateral Trade and Investment Agreement with the European Union. It was called off in 2013 when both sided failed to reconcile their differences. A trade deal with UK is now plausible. PM Modi’s invite to the UK PM Boris Johnson as the Chief Guest of Republic day could be a good start for both the sides to start a good trade deal.
  • The Indian companies whose headquarters are based in UK or European Union may face some challenges. This is mainly due to the restrictions imposed by UK and EU on the movement of professionals in their territories.
  • UK will need more talent inflow after the Brexit. This is because there are restrictions in the travel of professionals outside European Union. The EU professionals will now have to apply fresh visa and other procedures to travel to UK just like another country post Brexit. However, this will be a gateway to Indian professionals. Also, India will fit in perfectly mainly due to its English-speaking population.


With Brexit deal, India has the capacity to increase its bilateral trade deal with UK by 26%. UK is India’s 14th largest trade partner with more than 14 billion USD of bilateral trade. India currently enjoys a trade surplus of 2 billion USD with the UK.


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