India and Ireland have a lot in common, right from the drafting of the constitution to the colours of the respective National flags. The economic indicators along with industry segments show lot of similarity as well. As per the latest Forbes article , taking into consideration GDP, India is ranked 5th in the largest economies of the world. Ireland takes the 1st rank position in the world when the GDP per capita is taken into account.
To add to the economic indicators, in the recent years, the number of Indians relocating to Ireland especially for higher studies, working in the IT sector and health sector has seen a surge.
The bilateral trade between India and Ireland has seen a significant upwards trajectory in the last 9 years. From € 3.9 Bn in 2015 to € 9.7 Bn in 2022, this corridor has seen a growth of approximate 150%. The bilateral trade takes in to consideration Services & Goods.
The recent visit of Ireland’s Minister for Enterprise, Trade and Employment, Minister Simon Coveney to India on the occasion of St. Patrick’s Day is another key step to bring more focus on the bilateral trade between India and Ireland. 2024 also marks the 75th anniversary of diplomatic relations between Ireland and India. The Minister in a press conference spoke about exploring the opportunities of collaboration between India and Ireland in the Aviation, Technology, Cyber Security, Semi Conductor, etc. “We want to build a stronger trading relationship. The trading relationship between India and Ireland today is worth at € 10 Bn , which is significant. But we can do a lot more. We hope the EU and India can agree a free trade on some stage by the end of the year.” added Minister Simon Coveney.
External Affairs Minister Dr. S. Jaishankar met H.E. Mr. Simon Coveney, Minister for Enterprise, Trade and Employment of Ireland in New Delhi.
Talking about the significance of India Ireland bilateral trade, the Ambassador of India to Ireland, His Excellency Mr. Akhilesh Mishra shared his thoughts:-
“India is going through an unprecedented transformation in manufacturing driven by Hon’ble Prime Minister Modi’s thrust on development of physical infrastructure, putting in place conducive policy & regulatory environment for the ease of domestic manufacturing and comprehensive regime for promotion of start-up and innovation. Besides traditional items such as textiles, agricultural products, pharmaceuticals and chemicals, India is emerging as a major manufacturing hub in electronics and telecom, high-value consumer goods and high-tech and defence manufacturing. India now has the third largest eco-system of Start-ups and Unicorns. Ireland, on the other hand, is a major European hub for manufacturing in IT, telecom, pharmaceuticals, medical devices and niche nutrition products. Ireland’s annual two-way goods trade is around Euro 330 billion, including about Euro 140 billion imports. There is significant opportunity for business leaders from both the countries to partner and leverage each others’ unique, complementary strengths for mutual benefit.
The Indian Embassy in Dublin has launched a number of initiatives for promoting mutual awareness about opportunities for business communities in India and Ireland. The Embassy’s regular programs include monthly Commercial State Series (highlighting recent developments in the chosen State and potential opportunities for Ireland-India business connect), monthly Buyer-Seller Meet on specific sectors, and India-Ireland Friendship Lecture Series for sharing inspiring, innovative stories of success, creativity and entrepreneurship in Ireland and India.
The Embassy invites ideas and suggestions from Indian and Irish friends for boosting bilateral trade and business engagement. All are welcome to approach the Embassy for any assistance and guidance on exploring opportunities in Ireland or India.”
As per the Central Statistics Office in Ireland, the bilateral trade between India and Ireland in 2021 was at € 9.28 Bn. This increased by € 400 Million in 2022. At € 9.69 Bn , 2022 saw highest bilateral trade between these countries. The trend is indicating that the numbers could cross € 10 Bn in 2023 (data awaited).
A look at the Ireland’s exports and imports of Services in 2021 and 2022 gives us an indicator of the major contributing categories. Ireland’s export is hugely driven by the computer services followed by financial services, operational leasing, insurance, etc. The royalties / licenses is the category leader while looking at the island country’s imports .
India Ireland bilateral trade has seen a notable performance in 2021 and 2022 in comparison with the period of 2015 to 2020.
Services sector witnessed India’s exports to Ireland crossing € 3 Bn for the first time in 2021 , a 400% increase in comparison to the € 0.62 Bn in 2016. The opportunities and potential collaborations possible in Ireland is immense. This sector has grown at pace , however, there is a huge market, if explored, that can help maintain the growth. The 2023 data is awaited and this will help in doing a detailed analysis of the Services sector.
Goods Sector: Exports from India to Ireland in the Goods sector over the last 9 years from 2015 to 2023 was at around € 6.3 billion. It is interesting to note that almost 45% of this has happened in the last three years , from 2021 to 2023.
In 2021 , the exports to Ireland from India really took a leap and crossed € 840 million. The markets opened up after the pandemic and this along with more Indians exploring Ireland market would have acted as a catalyst for this.
The year 2022 witnessed the exports to Ireland crossing € 1 billion for the first time ever. This indeed is a great sign of the slow and steady growth of the India’s exports in the goods sector.
2023 was not far behind in the numbers. The export figures were at € 0.985 billion. The average exports in the last three years is at approximately € 0.95 billion.
The top 25 contributing commodity groups in each year have been captured in the above images. When we combine the years and look at the top 25 contributing commodities , it shows that organic chemicals is on the top followed by apparel. However if we combine apparel and textile then the figures will go past that of organic chemicals. The below figures clearly indicate the top commodities which have been performing well in the last 3 years. Footwear, coffee, tea, spices , sugar, honey, vegetables and fruits are some of the commodities which has a good potential in the Ireland market.
The signs are really positive when we analyse the past three years however there is a huge opportunity for Indian businesses. India is contributing only 0.7% to the total imports when we look at the 2023 data.
As per CSO reports, the imports in to Ireland were at € 140 Bn in 2023. India has tapped into only 0.7% of the market. The USA , Great Britain, France, China, Germany took the top 5 positions in 2023. India is 21st in the list.
If you are wondering what goods are getting imported to Ireland then the below table will give you an idea of the commodities.
The Indian Embassy in Dublin, Ireland , in addition to the ‘India Ireland Friendship Lecture Series’ which is being held since May 2022, have recently started a monthly series of events to enhance and showcase the Ireland market potential to Indian businesses. This includes:-
1. The Commercial State Event Series
2. The State Tourism Event Series
3. The Buyer Seller Meet Series
4. The State Cultural Event Series
5. The India Showcase Exhibition Series
These are some of the events which are focusing in providing a platform for Indian businesses and entrepreneurs to explore the Ireland market. This also gives an opportunity to businesses in Ireland to understand and learn more about the offerings available in India.
Overall, the exports from India to Ireland have done well in the recent years. However the market potential as mentioned above is really big. The next couple of years will be key and interesting for businesses who will take the next step forward to explore the Ireland market. If the above figures are an indicator of the movement of the market, the businesses from both countries in the services sector and the good sector could witness lot of traction.
In addition to this, there is significant work happening in the start-ups industry in Ireland and India. This is another area where the ideas as well as expertise available in the respective countries can be utilised to enhance the overall synergies.
India Ireland bilateral trade is on the move and the support extended by the governments of both nations will augment the growth of business as well as the bilateral relations.
(It will be interesting to analyse the 2023 data and hoping to see the bilateral trade figures cross € 10 Bn).
(Data reference used for this article: Central Statistics Office, CSO.ie)
(article updated to add the visit of Ireland minister to India)
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