By APD writer Rishika Chauhan

NEW DELHI, Jan. 28 (APD) - According to recent reports, the law ministry and the commerce ministry officials are pondering over the implications of the United Kingdom’s (UK) looming exit from the European Union (EU) for India.

Some reports also state that to protect its interest post Brexit, India is considering following a legal route.

A Hindustan Times report quoted an Indian government official explaining, “The Law Ministry wants the Commerce Ministry to take up the matter in the World Trade Organisation.”

Brexit might limit Indian companies’ access to the EU through the UK, which will have adverse consequences. Agreements might have to be reworked on and renegotiated in the changed circumstances.

Moreover, transfers within the company and Indian migration might also be affected.

The sectors that are most likely to be affected are automobiles, pharmaceuticals, education and Information and Technology.

Moreover, UK might not attract as many Indian investments after it leaves the EU as tax concession on income and many other privileges that UK extends to investors as part of the EU may no longer be offered.

Currently bilateral trade between India and the UK is noteworthy. External affairs ministry data states that in 2017-18, it stood at $14.5 billion. While, India’s trade with EU during the same time was $79.89 billion.

(ASIA PACIFIC DAILY)