Brexit to impact Indian IT industry in short-term'

June 24, 2016

Bengaluru, June 24: Britain exiting the European Union (Brexit) would impact the Indian IT industry in the short-term owing to volatility in the exchange rate, uncertainty and terms of exit, a top industry representative said on Friday.

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"The impact of Brexit will certainly be negative in the short-term on account of volatility in the exchange rates, uncertainty in the markets and the terms on which Britain will leave the Eu," Nasscom President R. Chandrashekhar said.

Britons voted 51.9 per cent for Brexit against 48.1 per cent of 'Remain' vote in a historic referendum on Thursday.

The referendum turnout was 71.8 per cent -- with more than 30 million people voting. This was the highest turnout at a British poll since 1992.

Terming the Brexit as a phase of uncertainty in the near term, the National Association of Software and Services Companies (Nasscom) executive said the historic move was also a mix of challenges and opportunities in the longer term.

"Europe is of prime importance for India, as it is not only the second largest market for our industry, but also contributes nearly 30 per cent of software export revenue, which is equivalent to $100 billion," Chandrashekhar asserted.

Noting that Britain had been a gateway for the Indian industry's investment across the EU over the decades, Chandrashekhar said a decline in value of British currency (pound sterling) would render contracts losing propositions unless they were renegotiated.

"The uncertainty surrounding protracted negotiations on the terms of exit and/or future engagement with EU could impact decision-making for large projects," the Nasscom president pointed out.

The exit may also lead to Indian outsourcing firms setting up separate offices or operations for EU and divestment from Britain.

Mobility of skilled labour between Britain and the EU will also be affected, while changes in the financial system and banks would have a bearing due to currency impact.

"Hence we urge policy makers in Brussels and London to provide greater clarity and guidance on the next steps so as to ensure our businesses have the clarity to stay invested in Britain," said Chandrashekhar.

According to indications, British policy makers are committed to minimise the possible negative impact of the referendum to quit the EU.

The historic development will also unleash opportunities as about 800 Indian firms, employing 110,000 people across the country, have a deeper partnership with Britain.

"In the long term, however, Brexit could lead to strengthening of Indo-British economic relationship, as Britain seeks to compensate for loss of preferential access to EU markets," Chandrashekhar affirmed.

With Britain less dependent on intra-EU immigration into its country, it could become more open to high-skilled immigration from other non-EU countries, including India.

"Britain will be under no obligation to adopt restrictive EU data localisation norms, which it does not subscribe to in their entirety. All these factors could benefit our bilateral economic relations," the former telecom secretary added.

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News Network
March 22,2024

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Bengaluru, Mar 22: An FIR has been registered against BJP MP Tejasvi Surya over a provocative hate post on social media, Election Commission officials said on Friday.

The move comes after a complaint filed by officials of the poll body and Bruhat Bengaluru Mahanagara Palike (BBMP) that the Bengaluru South MP, who is also the President of Bharatiya Janata Yuva Morcha, had in a post apparently targeted a minority and spread enmity between two communities.

He also made a similar post on March 19 on X and YouTube which went viral. He has 1.3 million followers on X, thereby influencing the voters and disturbing the communal harmony between the communities, it further alleged.

Based on the complaint, an FIR was registered at Halasuru Gate police station on March 20 under sections 153 A (promoting enmity between different groups on grounds of religion, race, place of birth, residence, language, etc., and doing acts prejudicial to maintenance of harmony), 295 A (Deliberate and malicious acts intended to outrage religious feelings of any class by insulting its religion or religious beliefs) of the Indian Penal Code and the Representation of the People Act, the officials said.

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News Network
March 27,2024

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At least seven people have been killed when Israeli warplanes bombed an emergency center in southern Lebanon near the border with the 1948 Israeli-occupied territories with air-to-surface missiles, according to Lebanese security sources.

Two sources, speaking on condition of anonymity said early on Wednesday that the strike targeted the Islamic Group’s emergency and relief center in Lebanon’s southern village of Habbariyeh.

Jamaa Islamiya, a Lebanese group closely linked to the Gaza-based Palestinian resistance movement Hamas, said in a statement that “a number” of people had been killed, and called the strike a “heinous crime.”

An official from the group said “seven rescuers” were killed in the aerial assault.

Another Jamaa Islamiya official, also requesting anonymity, said a dozen medical staff were in the emergency center at the time of the strike, adding that bodies were being pulled from the rubble.

Lebanese lawmaker Hassan Mrad said “the Israeli aggression on Habbariyeh adds to the long list of Israeli crimes.”

Israel has been launching air strikes against Lebanon since the beginning of its onslaught against the Gaza Strip in early October.

An Israeli strike knocked down part of a building in the southern Lebanese city of Nabatiyeh on February 14, killing seven members of the same family, including a child, Lebanon’s official National News Agency said. A boy initially reported missing was found alive under the rubble.

In a separate Israeli attack, a woman and her two children were killed in the village of as-Sawana in southern Lebanon.

The Israeli regime launched its devastating hostilities in the Gaza Strip on October 7 after the territory’s Hamas-led Palestinian resistance groups carried out a surprise retaliatory attack, dubbed Operation Al-Aqsa Storm, against the occupying entity.

Israel's raids have resulted in retaliatory strikes from Hezbollah in support of the Palestinian people in the Gaza Strip.

The movement has vowed to keep up its retaliatory operations as long as the Tel Aviv regime continues its onslaught on Gaza.

The Israeli campaign in Gaza has killed at least 32,414 people, most of them women and children. Another 74,787 individuals have also been wounded.

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News Network
March 26,2024

Bengaluru: The National Investigation Agency (NIA) has detained two suspects in connection with the Rameshwaram Cafe blast case in Bengaluru, sources confirmed on Tuesday.

The preliminary probe has revealed that the two suspects were in direct contact with the suspected bomber.

The NIA sleuths have picked up the suspects from an area in the state capital. However, a statement is yet to be made by the NIA in this regard.

Even as the investigating agencies, both NIA and state special wing CCB teams have launched an extensive search operation in various states, the bomber has remained elusive. The authorities had obtained the bomber’s images and videos from CCTV footage on March 1, soon after the incident.

Sources said that the sleuths were suspecting that the bomber had come from Tamil Nadu and was staying in a neighbouring state for two months before carrying out the blast.

The hair samples of the accused were gathered from the hat of the accused which he abandoned in Bengaluru near a religious place. The authorities have sent the samples for the DNA testing and were hoping for a breakthrough.

The Rameshwaram Cafe bomb blast took place on March 1 on the International Technology Park Limited (ITPL) road in the Brookfield area. Low intensity Improvised Explosive Device (IED) was used to carry out the blast and nine persons were injured in the incident.

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