Indian SMEs need to explore markets of Ireland: McCarrick

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Anand Choudhary | 04 Apr, 2008
Expressing dismay that despite huge opportunities in Ireland, India doesn't see this European nation as a key trade partner, Mr. Gabriel McCarrick Commercial Counselor, Embassy of Ireland in India in an interview to SME Times said, Small and Medium Enterprises (SMEs) from India should look for joint ventures and exports in the field of consumer products like garments, footwear and food-products in Ireland.

"I don't think it (India-Ireland trade) is growing at a fast rate. Let me tell you that till now there has been no Indian trade mission to Ireland to discuss trade so I guess the Indian Government should do more in addressing this issue," Mr McCarrick said.

Excerpts of the interview...

SME Times: Welcome Sir, it's a pleasure to have you for an interview on the investment opportunities in the Republic of Ireland. So, I should start with the interview...

Which are the major products and commodities that Ireland exports to India?
Gabriel McCarrick: Well, I will say the major exports from Ireland to India are in the field of Pharmaceuticals and Electronics.

Which are the goods and commodities that Ireland imports from India?
Gabriel McCarrick: Ireland mainly imports Chemicals, IT components, metals and machinaries, garments and electronic goods from India.

Which are the things that Ireland will like to import from India in the near future?
Gabriel McCarrick: We will rather like to have joint ventures with Indian companies in the field of IT, Healthcare, Aviation , Telecom among others.

Which are the areas in which SMEs from India can look for Joint Ventures with the Irish companies besides exporting their goods? If you have to name a few.
Gabriel McCarrick: Let me tell you that most of the businesses in Ireland belong to SMEs and we are tying to make our SMEs into global players. While answering your question I will say the SMEs from India can look for joint ventures and exports in the field of consumer products...garments, footwear, food, anything they want to. We are a free market economy so we don't put any sort of restriction on the market.

Does Ireland offer any kind of incentives or Tax Holidays to investors looking for investments in Ireland?
Gabriel McCarrick: A lot I can say. We offer the lowest corporate tax in Europe at 12.5%. We have an excellent infrastructure over here. Besides we do offer tax holidays, but that depends on the type of industry. We address it on a case to case basis.

Which are the fields or sectors in which the Irish Govt. will offer incentives?
Gabriel McCarrick: Well we are a knowledge-based economy so we may offer incentives in the field of IT, Pharmaceuticals, Healthcare, besides we will have to look whether a company will be able to sustain itself in Ireland or not as the cost space and labour costs are quite high in Ireland.

What's the lowest cost for hiring an unskilled labour in Ireland?
Gabriel McCarrick: Legally, the lowest cost of labour in Ireland is 8.5 Euros per hour. That is the lowest cost if you want to hire an unskilled labourer in Ireland. So, the labour cost just goes up as you go up the ladder.

A businessman who does not have much knowledge on how to go for a tie-up or some kind of a joint venture with a Irish company than what should he adopt and more precisely what are the laws for foreign companies coming to Ireland?
Gabriel McCarrick: First and foremost he has to establish a company of which at least one of the directors should be an Irish national besides when coming to Ireland for a tie-up you should contact a businessman in your respective field. The govt. does not interfere in it. Besides one can always contact us.

How do you see the future of trade between India and Ireland?
Gabriel McCarrick: I don't think its growing at a fast rate. Let me tell you that till now there has been no Indian trade mission to Ireland to discuss trade, so I guess the Indian govt. should do more in addressing this issue.

SME Times: Thank you very much, Sir.

India-Ireland Trade Figures:

S.No.	\Year	2002-2003	2003-2004	2004-2005	2005-2006	2006-2007
1.	EXPORT	65,727.27	69,356.07	95,249.84	123,864.38	102,184.09
2.	%Growth		5.52	37.33	30.04	-17.50
3.	India's Total Export	25,513,728.00	29,336,674.00	37,533,952.00	45,641,788.00	57,177,928.00
4.	%Growth		14.98	27.94	21.60	25.28
5.	%Share	0.26	0.24	0.25	0.27	0.18
6.	IMPORT	47,419.23	60,256.79	82,289.84	71,681.09	130,633.23
7.	%Growth		27.07	36.57	-12.89	82.24
8.	India's Total Import	29,720,586.00	35,910,764.00	50,106,456.00	66,040,888.00	84,050,632.00
9.	%Growth		20.83	39.53	31.80	27.27
10.	%Share	0.16	0.17	0.16	0.11	0.16
11.	TOTAL TRADE	113,146.49	129,612.86	177,539.68	195,545.47	232,817.31
12.	%Growth		14.55	36.98	10.14	19.06
13.	India's Total Trade	55,234,314.00	65,247,438.00	87,640,408.00	111,682,676.00	141,228,560.00
14.	%Growth		18.13	34.32	27.43	26.46
15.	%Share	0.20	0.20	0.20	0.18	0.16
16.	TRADE BALANCE	18,308.04	9,099.28	12,959.99	52,183.28
17.	India's Trade Balance	-4,206,858.00	-6,574,090.00	-12,572,504.00	-20,399,100.00	-26,872,704.00

Note: (Figures provided by DGFT) The country's total imports since 2000-2001 does not include import of Petroleum Products (27100093) and Crude Oil (27090000)