Ireland woos Indian companies

Dublin:With just five months away for Brexit to become a reality, Ireland is wooing Indian companies, currently having United Kingdom (U.K.) as their EU headquarters, to shift base to the country.

“Indian companies in the U.K. and particularly, those using the U.K. as a gateway to the EU face some important strategic and operational decisions,” said Tanaz Buhariwalla, director, India, IDA Ireland.

Since IT, automobile and pharmaceutical industries may be among the most prominent sectors for which Brexit poses some special challenges, Ireland has stepped up efforts to attact them. Also, other industries such as garments, chemicals, polymers and consumer goods, which will have to review their strategies for a post-Brexit EU, are on the radar.

“Setting up offices in multiple EU countries is likely to be an expensive, unnecessary and complex exercise, and therefore the need for companies to identify the one, right location within the EU that works for them,” she said.

As per IDA’s estimates India’s trade with the EU — minus the U.K. — has more than trebled since 2000.

The EU, even without the U.K., is the third largest market for Indian companies. About 800 Indian companies use the U.K. as a gateway into the EU; over 1,10,000 people are employed with those companies. “An important segment of the automobile industry is also nervous about the post-Brexit world,” Ms. Buhariwalla said.

For Tata Motors Jaguar Land Rover (JLR), Europe is an important market, accounting for 25% of the global sales.

As Brexit draws closer, she said Indian firms must also factor in several uncertainties that are lying ahead