A potential British exit from the European Union would result in "considerable uncertainty"
 for Indian businesses in the UK, the Federation of Indian Chambers of Commerce 
and Industry (Ficci) told IBTimes UK So while there are some who are in favour of
 Brexit and some against it, The National Association of Software and Services 
Companies (NASSCOM), a trade association of Indian IT and business process
 outsourcing (BPO) companies, has a mixed stance on the same.
It said that initial analysis had indicated that Brexit's impact on India's technology sector would be "clearly negative in the short term and harder to discern in the longer term – with either scenario having some positive and some negative points."
The IT trade association said that the immediate negative impact of Brexit on Indian companies would be the possible decline in the value of the pound. It explained that this would "render many existing contracts in losing propositions unless they are renegotiated."
NASSCOM added that other uncertainties caused by Brexit such as a slowdown in the British economy or uncertainties relating to the terms of the exit and future engagement with EU or uncertainty relating to exchange rates could also be other negatives for the Indian IT and BPO industry.
Indian companies may also need to setup separate headquarters for EU operations. Additionally, the mobility of skilled labour across EU and UK will reduce, NASSCOM said. "It would affect UK as well, as this would mean divestment from UK and diversion of activity to the EU."
That said, the Indian IT association said that a Brexit could lead to strengthening of India-UK economic relationship in the longer run. A Brexit may increase UK's focus on being seen as an independent market with a renewed focus to build scale and new markets, which in turn could work in favour of India, NASSCOM opined.
"India's focus on innovation, entrepreneurship and high-end work, renders it a very attractive destination from a talent standpoint, and equally in terms of market access. This could work to the benefit of the IT sector in India, since UK currently accounts for about 17% of India's IT exports worldwide", it said.
The IT association added that a Brexit would make UK less dependent on intra-EU immigration into UK and this could make UK more open to high-skilled immigration from non-EU countries such as India.
"Further, UK would 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 India-UK bilateral economic relations", NASSCOM said.