Orient Craft, an Indian company exporting to retailers such as Marks & Spencer in Britain, is deeply worried about the June 23 referendum that decides whether Britain exits the European Union. Orient’s nearly one-third of total apparel exports are destined for Britain and Europe. And many other Indian companies are expressing similar concerns over the upcoming vote. However, company Chairman Sudhir Dhingra points out the United Kingdom (UK) by itself is a very small market compared to the rest of Europe.

Due to the deep historical links between the two countries, Britain has served for decades as the gateway to Europe for Indian businessmen. In recent years, a fast-growing domestic economy has put more money in the pockets of Indian business magnates as their investments in Britain have grown in scale and size, making India the third largest foreign direct investor behind the United States and France. In 2014, Indian investment in Britain increased by as much as 64 per cent.

Meanwhile, the Federation of Indian Chambers of Commerce and Industry (FICCI) warns the flow of these investments will suffer if Britain chooses to leave the European Union as this will create uncertainty for Indian businesses.