'Brexit' can open up opportunities for India: Report

An exit of Britain from the European Union, referred to as 'Brexit', will create a lot of uncertainty within Europe, but can open up opportunities for India, says an SBI research report.

British public will vote in a referendum on June 23 to decide whether the country will remain a part of the 28-nation bloc.

According to the report by the SBI's Economic Research Department, Brexit may actually strengthen India's position as a truncated EU may have to rework its negotiation strategy in order to gain market access.

"This referendum will have geopolitical implications and will affect the relation of the rest of the world with Europe. But, our take is that though such an exit brings up a lot of uncertainty within Europe, it definitely opens up opportunities for India," the SBI report said.

From an India point of view, it is also necessary to appreciate that in the event of Brexit, it is unlikely that UK financial market and its financial expertise will evaporate overnight, it said.

According to SBI, there is one visible fallout of this referendum -- it does put a question mark on the future of Indo-EU Free Trade Agreement.

"If the UK comes out of the EU, then there is no need for this trade deal. Growing discomfort among Indian firms about the existing FTAs, which have led to imports shooting up and Indian businesses becoming uncompetitive, is another reason the government is being cautious while negotiating new trade deals," it said.

The Brexit referendum is by far the most testing event that will decide the course of global recovery, it added.