Brexit deal good news for India

Brexit deal good news for India

Agency News

Britain and the European Union (EU) agreeing to a new Brexit deal spells good news for Indian companies with large investments in the United Kingdom.

If the agreement is ratified by the British Parliament, it will end the uncertainty plaguing the operations of many Indian companies for the last three years, according to  analysts.

The biggest relief will be felt at Bombay House, headquarters of the Tata group, one the largest  investors in the UK through companies such as Tata Motors, Tata Steel, Tata Consultancy Services, Indian Hotels, and Tata Global Beverages. The group has invested nearly 50 billion pounds there since its acquisition of Corus Steel in 2007.

Other Indian companies with a large exposure to Britain include Mastek, CRISIL, Solara Active Pharma, eClerx Services, Majesco, and Rico Auto Industries.

In an interview the  Tata group Chairman, Mr.  N Chandrasekaran, said dealing with tariffs was the 'new normal' for the global auto industry and that negotiations around Britain’s exit from the EU had taken too long. 'Sometimes it’s better to have clarity than a desirable result,' he said.

Tata Motors-owned JLR is likely to be impacted by Brexit. Shares of Tata Motors jumped about 10 per cent on the BSE on Thursday after the deal was announced, although JLR was hesitant to declare an end to the Brexit struggles of the car industry.

'We welcome the latest developments and await the next steps, but we cannot comment further until we have considered the detail of the deal and know whether it is supported by Parliament,” the company said in a statement.