India's second and third-largest markets for outbound IT services, which stood at $136 billion in 2018-19, according to Nasscom.
BS
: As the European Parliament votes late on Wednesday to ratify
the terms of Britain’s exit from the European
Union (EU), Indian exporters are hoping to seize the gulf in
trade relations that is set to emerge. “A lot will depend on the
exact terms of agreement that the United Kingdom (UK) reaches with
the EU.
If
the UK decides to enter into a Customs union with EU, shipment flows
will continue unhindered and without much change to the logistics
value chain,” said Ajay Sahai, director general of the Federation
of Indian Export Organisations.
A
Customs union generally consists of a trade bloc composed of a free
trade area and a common external tariff for products and services.
This will require a new trade pact between both parties, which
creates a common external trade policy. This may be similar to the
current scenario where EU member states (EU) delegate authority to
the European Commission to negotiate their external trade relations
through the Common Commercial Policy.
But
chances for this are slim, experts say. “The UK government has said
it won't hand over the power to decide on foreign trade matters to
Brussels (EU capital). Britain will negotiate its own trade deals
with various nations after Brexit with an eye on its own interests,”
a highly placed source at the British High Commission said.
“It
doesn’t matter what the post Brexit
scenario is, since India stands a good chance to exploit the
opportunity. Indian goods will compete with British goods in EU and
vice versa,” Sahai said.
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