The net effect of Brexit may be positive for India. After leaving the EU, the UK would want to develop trade relations with emerging markets from around the world. India, with its strong economic fundamentals and a large domestic market, is in a better negotiating position. India’s high proportion of skilled working-age population and high growth rate will be of particular interest for the UK.

Potential sectors to benefit from a FTA between the UK and India include textile, machinery, engineering goods, information technology and banking. India could emerge as a major source of high tech exports for the UK. The country’s BPO market could see strong growth prospects if the FTA between the two countries fosters an easy visa regime and greater market access for Indian firms.

The UK’s currency is expected to remain weaker, so it would be less expensive for Indian firms to import from their subsidiaries in the UK. Brexit opens substantial opportunities for the Indian education sector. Educational institutes in the UK might offer more incentives, which could essentially make education in that country less expensive. Importantly, in the post-Brexit world, Indian students studying in the UK might get a more level playing field compared with other EU students who until now enjoyed an advantageous position.