London: With Britain deciding to leave the European Union, one can expect the country attracting Indian firms to invest there with bigger incentives in terms of tax breaks and lesser regulation, an RBI official has said.
Inaugurating a seminar on 'Importance of Financial Documents in Foreign Trade' here, U Chiranjeevi General Manager In-charge, Reserve Bank of India, Kochi, said the implications of Brexit are significant for China and India as they are significant exporters to the EU and Britain.
"In all probability, they will have to revisit bilateral investment protection agreements with the UK separately. The UK accounts for 15 per cent of India's total merchandised trade, but its share has been declining."
"Thus, one can expect Britain to try extra hard to woo Indian companies to invest there by providing much bigger incentives in terms of tax breaks, lesser regulation and other financial incentives," Chiranjeevi was quoted as saying in a release issued by Ficci here today.
Noting that RBI has always taken a calibrated and open-ended approach to strengthen foreign trade, the official said past few years, the Foreign Trade policy has been more favourably inclined towards exports compared to imports.
The day-long seminar yesterday was organised by International Chamber of Commerce India (Indian affiliate of ICC) in association with Ficci and State Bank of India.
Chiranjeevi said, Category-I banks are required to conduct export transactions in conformity with Foreign Trade Policy in vogue and the rules framed by the government and the directions issued by RBI.
"RBI has taken effective steps to move in tandem with the government's efforts towards Make in India, Digital India, Start-Up India Stand-Up India and ease of doing business."
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