MUMBAI // The possibility of the United Kingdom exiting from the European Union, as the June 23 referendum nears, has triggered concerns that Indian companies with interests in the region may have to overhaul their businesses.
In addition, there are concerns investment and trade from India into the UK could be dampened if such a move does take place.
India has become an increasingly important investor for Britain. It is now the third-biggest provider of foreign direct investment into the UK, according to UK Trade and Investment. Indian companies employ 110,000 individuals in the UK, figures published by the Indian government show.
“Uncertainty surrounding the UK’s impending EU referendum and the possibility of ‘Brexit’ may have a bearing on both the UK economy and on Indian companies’ appetite for investing in the UK, particularly those seeking access to the European market,” according to a report by Grant Thornton.
“Potential Brexit is a pressing concern for companies currently considering the location of a European headquarters. Whether a London and a UK outside the EU will remain an attractive destination for Indian companies remains to be seen.”
Tata Motors, which owns Jaguar Land Rover (JLR), the pharmaceuticals companies Wockhardt and Cipla, and the telecommunications firm Bharti Airtel, are some of the Indian companies that have a major presence in the UK.
Indian IT outsourcing companies have also been expanding in Britain as they look beyond the United States to try to grow their revenues. Part of their strategy of growing in the UK is to reach the rest of Europe.
“The UK is a valued economic partner for India and we firmly believe that leaving the EU would create considerable uncertainty for Indian businesses engaged with UK and would possibly have an adverse impact on investment and movement of professionals to the UK,” according to A Didar Singh, the secretary general of the Federation of Indian Chambers of Commerce and Industry.
A number of Indian companies use the UK, including IT services and pharmaceutical companies, as a hub to gain access to and expand through Europe.
Historical ties between the two countries, language, and the fact that a number of Indians have family connections in the UK could work in its favour, some observers note.
“Britain is considered an entry point and a gateway for the European Union by many Indian companies,” says Mr Singh. “While deciding on membership of the EU is a sovereign matter for Britain and its people, Indian industry is of the view that foreign businesses cannot remain isolated from such decisions.”
The Indian prime minister, on an official visit to the UK in November to boost economic ties between the nation, stressed that he wants to see the UK remain in the EU.
The main risk for exporters from India would be if, following a Brexit, the UK changed the guidelines for some products, meaning that businesses might then have to make separate products for the two markets, says Aditya Berlia, an executive member of management board of the Apeejay Stya and Svran Group, a family-run industrialist and investment house in New Delhi, which has interests in the UK and wider EU, including exports of pharmaceuticals.
Ajay Kothari, a member of the British Business Group and the European Business Group in Mumbai, says that there will be a significant impact “in the short term and in the long term”.
“The investments that are going from India would definitely go down and also, in the long term, the UK will lose the benefits of being part of the EU, so it will lose on that.”
Abhimanyu Sofat, a co-founder of AdviseSure, an investment advisory company in India, says the “UK is considered a bridge to entire Europe”, so if it leaves the EU this would have impact for Indian companies and their appetite for expansion in the UK.
“There could be some changes in taxation,” he says. “If there are some trade barriers, that could also have a potential impact. For example, JLR have their plants in the UK, which are used for exporting to the European market. That could be a problem if some duties are imposed.”
In a statement delivered to the UK parliament in February, Britain’s prime minister David Cameron said the country had “secured commitments to complete trade and investment agreements with the fastest-growing and most dynamic economies around the world”, including India, which would bring in funds and create jobs in the UK.
“Britain has benefited from the negotiating muscle that comes from being part of the world’s largest trading bloc,” Mr Cameron said.
But if the UK were to leave the EU, it could be seen as far less enticing for Indian companies.
“Country after country have said to me that, of course, they could sign trade deals with Britain,” he says.
“But they have also said that their priority would be trade deals with the EU. By their nature these EU deals would be bigger and better. And a deal with Britain wouldn’t even be possible until we had settled our position outside the EU … We would be looking at years and years of delay.”
Mr Berlia says that “there will be a little pain” if Brexit takes place. For example, some companies might have to change their logistics, such as routing shipments through different ports or establishing warehouses in different locations.
But the impact might not be as dramatic as some are predicting. In fact, there could be some positive consequences for Indian businesses, he adds.
He says that his company already largely treats the UK as a separate entity from the EU because it requires distinct visas and has a different currency.
“Brexit would probably make an UK-India FTA [foreign trade agreement] much more likely,” he says.
“There’s very little that the UK and India fight over – they’re very complementary economies. In fact, it’s harder to do an EU-India FTA because of France’s agriculture subsidies and Germany’s insistence on auto.”
Mr Berlia adds that Indian companies that operate in the UK and Europe are already very well connected into the rest of the EU.
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MATCH INFO
Uefa Champions League semi-finals, first leg
Liverpool v Roma
When: April 24, 10.45pm kick-off (UAE)
Where: Anfield, Liverpool
Live: BeIN Sports HD
Second leg: May 2, Stadio Olimpico, Rome
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
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Ultra processed foods
- Carbonated drinks, sweet or savoury packaged snacks, confectionery, mass-produced packaged breads and buns
- margarines and spreads; cookies, biscuits, pastries, cakes, and cake mixes, breakfast cereals, cereal and energy bars;
- energy drinks, milk drinks, fruit yoghurts and fruit drinks, cocoa drinks, meat and chicken extracts and instant sauces
- infant formulas and follow-on milks, health and slimming products such as powdered or fortified meal and dish substitutes,
- many ready-to-heat products including pre-prepared pies and pasta and pizza dishes, poultry and fish nuggets and sticks, sausages, burgers, hot dogs, and other reconstituted meat products, powdered and packaged instant soups, noodles and desserts.
Griselda
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The nine articles of the 50-Year Charter
1. Dubai silk road
2. A geo-economic map for Dubai
3. First virtual commercial city
4. A central education file for every citizen
5. A doctor to every citizen
6. Free economic and creative zones in universities
7. Self-sufficiency in Dubai homes
8. Co-operative companies in various sectors
9: Annual growth in philanthropy
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
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The biog
Name: Capt Shadia Khasif
Position: Head of the Criminal Registration Department at Hatta police
Family: Five sons and three daughters
The first female investigator in Hatta.
Role Model: Father
She believes that there is a solution to every problem
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
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IF YOU GO
The flights
FlyDubai flies direct from Dubai to Skopje in five hours from Dh1,314 return including taxes. Hourly buses from Skopje to Ohrid take three hours.
The tours
English-speaking guided tours of Ohrid town and the surrounding area are organised by Cultura 365; these cost €90 (Dh386) for a one-day trip including driver and guide and €100 a day (Dh429) for two people.
The hotels
Villa St Sofija in the old town of Ohrid, twin room from $54 (Dh198) a night.
St Naum Monastery, on the lake 30km south of Ohrid town, has updated its pilgrims' quarters into a modern 3-star hotel, with rooms overlooking the monastery courtyard and lake. Double room from $60 (Dh 220) a night.
Friday's schedule at the Etihad Airways Abu Dhabi Grand Prix
GP3 qualifying, 10:15am
Formula 2, practice 11:30am
Formula 1, first practice, 1pm
GP3 qualifying session, 3.10pm
Formula 1 second practice, 5pm
Formula 2 qualifying, 7pm
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
The specs: 2018 Mercedes-Benz E 300 Cabriolet
Price, base / as tested: Dh275,250 / Dh328,465
Engine: 2.0-litre four-cylinder
Power: 245hp @ 5,500rpm
Torque: 370Nm @ 1,300rpm
Transmission: Nine-speed automatic
Fuel consumption, combined: 7.0L / 100km
Padmaavat
Director: Sanjay Leela Bhansali
Starring: Ranveer Singh, Deepika Padukone, Shahid Kapoor, Jim Sarbh
3.5/5
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
The specs
Engine: four-litre V6 and 3.5-litre V6 twin-turbo
Transmission: six-speed and 10-speed
Power: 271 and 409 horsepower
Torque: 385 and 650Nm
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Killing of Qassem Suleimani
The Kingfisher Secret
Anonymous, Penguin Books
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Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
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CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
COMPANY PROFILE
Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed
The Intruder
Director: Deon Taylor
Starring: Dennis Quaid, Michael Ealy, Meagan Good
One star
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Dr Afridi's warning signs of digital addiction
Spending an excessive amount of time on the phone.
Neglecting personal, social, or academic responsibilities.
Losing interest in other activities or hobbies that were once enjoyed.
Having withdrawal symptoms like feeling anxious, restless, or upset when the technology is not available.
Experiencing sleep disturbances or changes in sleep patterns.
What are the guidelines?
Under 18 months: Avoid screen time altogether, except for video chatting with family.
Aged 18-24 months: If screens are introduced, it should be high-quality content watched with a caregiver to help the child understand what they are seeing.
Aged 2-5 years: Limit to one-hour per day of high-quality programming, with co-viewing whenever possible.
Aged 6-12 years: Set consistent limits on screen time to ensure it does not interfere with sleep, physical activity, or social interactions.
Teenagers: Encourage a balanced approach – screens should not replace sleep, exercise, or face-to-face socialisation.
Source: American Paediatric Association
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
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How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
