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DUBLIN, DECEMBER 6: High labour costs coupled with unwillingness of the locals to take up low-end jobs have opened up the prospects of foreign multinationals in Ireland outsourcing their work to India along with a large dose of investments.
Information technology, biotechnology, engineering and financial services are sectors that Irish manufacturers are said to be keen on investing in.
World IT giants like Dell, Ericsson, HP and Intel, pharmaceutical giants Novartis, Roche and Genzyme have their base in Ireland, which exports 80 per cent of its manufactured goods.
The Irish engagement with Indian industry and trade will get a boost when Prime Minister Bertie Ahern leads a trade mission to India mid-January next at the head of an over 100-member delegation that is expected to include Chief Executives of a number of multinationals.
Officials in industrial development authority, responsible for attracting foreign direct investment, enterprise island and Irish exporters association say that joint ventures with Indian companies in information and communication technology and pharmaceutical sectors are also not ruled out.
Though definite proposals are yet to materialise, officials said that joint ventures with Indian IT giants like Infosys, Wipro and TCS and biotechnology leaders like Biocon which are on the cards could be concretised during the visit.
Enterprise trade and Employment Minister Michael Martyn said as much when he pointed out that India had an established reputation in the software sector and there was potential scope for collaboration between industries in the two countries in this sector.
A highly export-driven booming economy, the "Celtic Tiger" boasts of euro 83 billion in exports and euro 50 billion in imports. Ireland attracted FDI to the tune of euro 171 billion.
During 2004, exports with India accounted for euro 109 while imports amounted to euro 133 billion, show the trade balance slightly in India's favour.
Talking to visiting Indian journalists about prospects of multinationals investing in India, IDA'S international Marketing Manager Brendan J Halpin points to a trade mission led by the Prime minister to China earlier this
year as part of the Asia strategy and how exports to that country had risen since then.
Speaking about his "exploratory" trade mission to India, Prime minister Ahern said they were interested in investing in technology and services sector and in joint ventures with India including in third world countries.
He said India could use Ireland as a "launch pad" for its investment in Europe.
As part of its strategy to expand its political and economic relations, Ireland is also putting in place a liberalised visa regime to enable easy entry to Indian students and skilled professionals for which a draft legislation has been made.
The legislation was currently under discussion in parliament and officials said it was likely to be enacted soon.
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