Britain may try hard to woo Indian investors: RBI official

The Dollar Business Bureau

With Britons choosing to ‘Leave’ European Union, expectation is that the country may attract Indian firms for investments with major incentives in tax breaks and relaxed regulations, said an RBI official.

The impact of Brexit is greater on India and China as they are the key exporters to UK and EU, said, U Chiranjeevi, General Manager In-charge RBI, Kochi.

Chiranjeevi was speaking during the seminar on 'Importance of Financial Documents in Foreign Trade'

India and China might have to reenter bilateral investment protection pacts with UK separately.

Even as UK accounts for 15% of India’s total trade in merchandise sector, its share has been declining.

Britain may try hard to woo Indian firms for investments by providing incentives like tax breaks, ease of regulations and other incentives financially, stated Chiranjeevi.

Noting the open-ended and calibrated approach towards foreign trade by RBI, Chiranjeevi stated that in the past few years, the FTP has been more positively inclined to push exports.

The seminar, which went on for entire day, was organized by Indian ICC affiliate, International Chamber of Commerce India, along with State Bank of India and FICCI.

Chiranjeevi further stated that Category-I banks need to conduct export transactions in conformity with FTP, under directions of RBI and rules framed by government.

RBI has taken major steps to boost the initiatives taken by the government. RBI has been moving in tandem with Centre’s efforts towards Digital India, Make-in-India, Start up India and ease of doing business, said Chiranjeevi.