Brexit: Ireland invites Indian companies to increase investment footprint

Especially woos Indian enterprises operating in the UK and worried over Brexit

Ireland is wooing United Kingdom (UK) -based Indian companies increasingly worried over the impending economic challenges in serving the European markets after the UK's proposed exit from the European Union, or Bexit, following a national referendum in this regard.
 

While Irish Premier Leo Varadkar has said that the UK can enter a customs union with the EU or even a deep-rooted Free Trade Agreement (FTA), Indian companies are apprehensive about the changes in cross-border trade, corporate taxation and logistics after Brexit.

Amid all this, Martin D Shanahan, CEO of IDA Ireland — the nations investment promotion body — was in India last month to meet companies in Mumbai, New Delhi and Bengaluru.
 

Ireland is uniquely positioned as one of the few feasible alternatives to Britain for doing business, Shanahan told Business Standard. Saying that the nation has a large English-speaking populace, a skilled workforce and commercial ties with the EU, Shanahan also laid stress on the fact that the country is much cheaper than destinations like Germany and Italy.

The country is also building on existing Indian companies which has a presence in Ireland. Among these, while companies in the IT segment such as TCS, HCL, Wipro and Mindtree dominate the landscape, pharma firms are also increasingly making their presence felt, Shanahan said.

The high scope of access to R&D  facilities have also started drawing companies to the country which has one set up by Infosys.

Currently, the 40 odd companies employ around 5, 000 people. The IDA expects this number to grow with tax concessions being offered to Indian companies apart from access to funding for startups and one of the best ease of doing business regimes in the world.

“Apart from the fact that companies can get registered within 48 hours, we have a easy regulatory environment,” Shanahan added.

On the subject of immigration, which has become contentious globally with the United States, Britain and Australia all opting for various forms of visa cuts, Shanahan said the country has no plans of restricting immigration or labour flows in the foreseeable future.

The Brexit process was triggered by British Government on 29 March, earlier this year, the second round of negotiations began in Brussels in mid-July 2017.

Britain has showed interest in forming a trade pact with India once the process is over.