India will support companies doing business in UK: Jayant Sinha

NEW DELHI: Government will support Indian companies operating in the UK to help them do business with the European Union post-Brexit, Minister of State for Finance Jayant Sinha said today.

"Business change is constant and (our) companies are very competitive and capable and I am sure they will be able to adjust to this.

"Whatever support is required on the trade side or in terms of negotiations or discussions with other sovereigns, we will be there to support them," he told reporters hours after Britain voted to leave European Union.

There are concerns that Indian companies in the IT and automobiles sector, having base in UK, may face issues in getting preferential assess to the EU market post Britain's exit.

Europe is the second largest market for Indian IT-BPM industry, constituting almost 30 per cent of the sector's export revenue of about $100 billion.

While Mahindra Group said Brexit would have muted impact on it, $100 billion Tata group said access to markets and a skilled workforce would remain important considerations for its businesses in Britain.

Tech Mahindra, however, said London-headquarters Indian companies may have to look at Europe from a different standpoint.

IT body Nasscom said Indian IT companies may need to establish separate headquarters/operations for EU. This may lead to some disinvestment from UK, it said, adding that skilled labour mobility across EU and UK could be impacted.

"The first priority of the UK will be to first have a new political leadership... They will have to work through what their arrangement with the EU and other trading partners, ofcourse India is one of those. But that is a long-drawn out process," Sinha said.

India, he added, is on a "rock solid" foundation right now.

"India is a haven of stability, both our macro economic fundamentals and reform and growth agenda is very very strong. We have a fortress balance sheet in terms of reserves," he added.