Topic– Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
3) Comment on what would Brexit, and the form it takes, mean for India and how should India prepare for this eventuality?(250 words)
Key demand of the question
The question expects us to shed some light on the complications surrounding Brexit, the implication of the deal on India and evaluate the response of India so far as well as how should her response be.
Comment – When you are asked to comment, you have to pick main points and give your ‘opinion’ on them based on evidences or arguments stemming from your wide reading. Your opinion may be for or against, but you must back your argument with evidences.
Structure of the answer
Introduction – Highlight why Brexit has been in news off late and discuss the complications.
- Comment on how and why would Brexit impact India
- Brexit is an opportunity for India to reset the legal terms of its trade with the UK and EU, at the multilateral level, and through free trade agreements.
- Indian businesses traditionally rely on the UK as their port of entry into the EU
- international trade law assured Indian businesses that entry into the UK was an entry into the EU
- Today, roughly 800 Indian companies operate in the UK, employing 104,932 people. India invests more in the UK than in the rest of the EU combined.
The UK is taking itself out of that combination. As Indian companies search for new markets beyond the UK, they will be unable to rely on the “four freedoms” guarantee of the EU customs union: free movement of goods, services, capital, and labor.
- Analyze how India’s response to Brexit has been and how it should be
- India should re-negotiate with the UK and EU the World Trade Organization Schedules of Concessions, for both goods and services, should resume its FTA discussions with the EU, and should prepare to launch FTA talks with the UK
- it needs to draw up a list of ‘substantially equivalent concessions’ it ‘initially negotiated’ with the UK and/or EU that it will ‘modify or withdraw’. On services, it needs to evaluate the prospect of WTO arbitration over ‘compensatory adjustments’ the UK and/or EU offers that India finds unacceptable, and thereafter modify or withdraw ‘substantially equivalent benefits’.
Conclusion – Give your view and discuss way forward.