Business Opportunities of Irish Companies in India

When it comes to India-Ireland relations, whether cultural connections or bilateral affairs, the two countries have numerous shared activities and interests to showcase to the world.

Historical evidence indicates that both India and Ireland were once under British colonial rule.

During the nineteenth century, numerous Irish individuals served in the British Civil Service and colonial army units stationed in India, spreading Irish influence across sectors such as medicine and education. 

Additionally, the cultural exchange between the two nations, involving literature, music, dance, and spirituality, was promoted by esteemed Nobel laureates Rabindranath Tagore and W.B. Yeats.

Through cultural events, festivals, and academic collaborations, the bond between India and Ireland has been further fortified.

Over time, these historical ties have evolved into robust economic relations, with trade and investment serving as significant pillars of the bilateral relationship.

The figures will substantiate the assertion, as during the fiscal year 2022-23, the total trade between India and Ireland amounted to US$ 4211.94 million.

Additionally, the estimated Indian diaspora community in Ireland stands at approximately 40,000 individuals, a fact underscored by the establishment of the Indian Embassy in Dublin as early as 1951. 

Consequently, this blog aims to examine how, over time, people, culture, and heritage have played pivotal roles in fostering robust bilateral and commercial ties between Ireland and India, facilitating the expansion of Irish companies into the Indian industrial market.

India-Ireland Cultural and Political Dynamics

The historical ties between India and Ireland have fostered deep cultural connections, sustained by both grassroots interactions and governmental efforts to preserve this enduring legacy.

To commemorate this shared heritage, the annual Indian film festival has become a fixture on the Indian embassy’s cultural calendar.

Here, filmmakers and actors from both nations captivate audiences with performances spanning Indian drama and contemporary cinema, while engaging in themed panel discussions with avid movie enthusiasts. 

In a bid to enrich this cultural exchange, the Indian Council for Cultural Relations (ICCR) recognized Rutger Kortenhorst, an Irish national, with the ICCR World Sanskrit Award 2020 for his dedication to teaching and promoting Sanskrit at John Scottus School, Dublin.

Additionally, ICCR celebrated India’s 75th Independence Day in Ireland by hosting the Theatrical group of Mrs. Dona Ganguly from August 19th to 21st, 2022, showcasing Rabindranath Tagore’s dance drama “Mayar Khela.”

The trend continues beyond this point. In 2023, the Indian Embassy in Dublin commemorated International Yoga Day, highlighting this significant Indian practice for fostering wellness.

The event was broadcast live to unite people and advocate for healthier lifestyles. Furthermore, India extends a warm welcome to Irish individuals, mirroring the hospitality extended to Indians in Ireland.

This reciprocal relationship is evident in the approximately 44,000 Irish tourists who visit India each year, as reported recently.

Beyond cultural ties, political relations between India and Ireland grew stronger after the Kanishka aircraft crash on June 23, 1985.

The Irish people and government took exceptional steps to support the Indian victims. This act of solidarity gained wide recognition.

The bond deepened when India’s External Affairs Minister, Shri P. Shivshanker, visited Ireland for the first-anniversary commemoration.

Political engagement continued with high-level visits. President A.P.J. Abdul Kalam later visited Dublin’s Trinity College to deliver a public lecture. He also attended a dinner hosted by the Irish Foreign Minister, alongside Irish President Mary McAleese.

India-Ireland Bilateral Trade and Economic Ties

The bilateral relationship between India and Ireland has experienced significant growth since Irish Prime Minister Bertie Ahern visited India in January 2006, which included a large trade delegation.

Subsequently, the India-Ireland Business Association was established in May 2008 to enhance business interactions between the two nations.

According to the Department of Commerce EXIM data bank, as of March 2023, India’s exports to Ireland have reached a remarkable USD 581.5 million, while imports from Ireland to India have reached an impressive USD 3630.44 million.

India’s exports primarily consist of organic chemicals, rubber, textiles, heavy machinery, and mechanical appliances.

Conversely, India imports significant quantities of electrical equipment such as sound recorders, optical instruments, surgical equipment, and plastic materials from Ireland.

Major Irish corporations, including Connolly Red Mills, Keventer, ICON, Globoforce, and CRH Taxback Group, among others, have established significant operations in India.

Meanwhile, the Indian embassy has consistently urged Irish companies to actively participate in key national initiatives such as “Make in India,” “Clean India,” “Smart Cities,” and “Digital India.”

Indian companies, in turn, have made substantial investments to establish their industrial presence in Ireland. 

Notable industry leaders such as Wockhardt, Ranbaxy, and Reliance Life Sciences have established manufacturing facilities in Ireland.

In a notable acquisition, Hindustan Zinc, a prominent Indian firm, purchased Lisheen, Ireland’s largest zinc mine, in May 2010 for USD 30 million.

Additionally, Indian industry giants such as TCS, Wipro, HCL, Infosys, and Shapoorji Pallonji have successfully penetrated the Irish market.

In light of Brexit, Ireland is emerging as a strong economic ally for India, with both countries collaborating on initiatives such as pharmaceuticals, medical research, cutting-edge technologies like AI, IoT, RFID, cybersecurity, and VR applications, as well as i-cloud messaging.

Additionally, their partnership is bolstered by shared attributes such as the widespread use of English, low corporate taxes, and similar legal frameworks.

Emerging Business Opportunities for Irish Companies in India  

Given the robust bilateral relationship that is continually strengthening, Ireland is poised to discover abundant opportunities within the Indian business market.

In this discussion, we will delve into several business sectors and explore how Ireland can tap into them in India.

Agriculture

The agricultural sector in India is currently undergoing modernization, actively pursuing cutting-edge technologies and innovative practices.

Extensive research and development efforts are being directed toward fostering sustainable agricultural methods, particularly in areas such as efficient water management and the promotion of organic farming techniques.

Furthermore, it’s worth noting that the agricultural industry in India is of significant importance, not just economically but also as the nation’s largest employer.

According to the World Bank’s 2023 reports, the sector contributes approximately 16% to India’s Gross Domestic Product (GDP).

Given this scenario, there are vast opportunities for Irish companies specializing in agricultural machinery, precision farming technologies, and crop protection innovations to explore and capitalize on in the Indian market.

Fin-tech and Med-tech

According to NASSCOM reports released in 2023, India’s financial technology (fintech) sector is projected to surge in value, potentially reaching a valuation of USD 150-160 billion by 2025.

Concurrently, the medical technology (med-tech) sector is anticipated to contribute significantly to India’s gross domestic product (GDP), with estimates suggesting an addition of USD 25-30 billion by 2025.

The rapid expansion of both the fintech and medtech sectors in India offers promising prospects for Irish companies specializing in payment solutions, digital banking, cybersecurity, telemedicine, medical devices, and healthcare information technology (IT), with ample opportunities for collaboration and investment.

Aviation

According to reports by The Times of India, the aviation sector in India is experiencing significant growth and is projected to emerge as a prominent global aviation hub.

Statistical forecasts suggest that domestic air passenger traffic is expected to soar to 300 million by 2030.

This promising trajectory presents vast opportunities for Irish companies specializing in aircraft engineering to capitalize upon.

Clean Technologies

India aims to achieve 450 gigawatts of renewable energy capacity by 2030. This goal creates significant opportunities for Irish clean technology companies.

These include wind, solar, and biomass energy solutions. It also opens the door to waste management, water purification, and air quality monitoring technologies.

Leveraging the Skilled Resources in India 

The growing trade relationship between India and Ireland thrives on the availability of skilled talent in India across sectors such as technology, healthcare, and startups.

India’s robust education system and emphasis on STEM have cultivated a highly skilled workforce, attracting Irish companies to tap into India’s IT expertise and healthcare advancements.

Additionally, India’s vibrant startup ecosystem has caught the attention of Irish investors, fostering cross-border investments.

As Irish companies expand their operations in India, they have traditionally relied on outsourcing or contracting to handle human resources tasks for their remote teams.

However, in recent years, a new business model has emerged, demonstrating remarkable efficiency.

By embracing the services of this new model, business owners can enjoy the cost advantages of outsourcing while maintaining the same level of control over their remote teams as they would if they formed a subsidiary in India.

Thus, it offers the benefits of both approaches, making it an optimal solution. This model, known as Employer of Record (EOR), is revolutionizing the way companies manage their global workforce.

Employer of Record (EOR) services play a crucial role for Irish companies in India, addressing legal compliance, payroll management, and HR administration challenges.

By partnering with an EOR in India, Irish companies can simplify operations, ensuring compliance with local labor laws and regulations while maximizing flexibility and scalability.

This ideal engagement not only mitigates risks but also enhances bilateral trade and economic engagement between India and Ireland, promising mutual prosperity in the future.

Conclusion

We can conclude by saying that the trade relationship between India and Ireland embodies a compelling fusion of shared historical ties, cultural resonance, and growing economic interconnections.

From historical colonial influences to dynamic cultural interactions and diplomatic engagements, the bond between India and Ireland runs deep and continues to flourish.

The significant bilateral trade, marked by notable import-export activities and investments across sectors, underscores the robustness of their economic partnership. 

Furthermore, the emerging opportunities in agriculture, financial technology, medical technology, aviation, and sustainable technologies present an optimistic outlook for Ireland to expand its footprint in India.

With shared principles and complementary strengths, India and Ireland are poised to stride confidently into a future marked by collaborative efforts and achievements, epitomizing a partnership that bridges the past while envisioning a prosperous tomorrow.