Britain is India's gateway to EU, says Sushma Swaraj

Britain is the gateway to the European Union (EU) for India, External Affairs Minister Sushma Swaraj said during a press conference in New Delhi on Sunday, indicating New Delhi's preference for Britain to stay within the EU.

"We have always held that, and articulated too in the past, that Britain is the gateway to the European Union," she said in  response to a query on India's position on Brexit referendum.

Sushma Swaraj also told that it was for the people of Britain to decide whether they like to stay within the EU or not.

"The decision has to be taken by the people of Britain and they would decide keeping in mind their national interest. India has no role to play in it," she added.

Britain is going to hold a referendum on June 23 to decide if it should stay within the EU or exit. The event is being called Brexit.

Though the minister did not elaborate on how Britain's possible exit would affect India's interests, the event is likely to have an impact on international as well as domestic markets.

According to experts, Brexit is expected to heighten global volatility, thereby impacting capital flows at home.

The domestic investors will be concerned about the direct negative impact that some of the India-based companies and sectors that have investments and exposure in Britain will suffer.

The possible British exit may also lead to overall outflows from the domestic equity markets as investors move to less risky assets like gold.