Lower corporate tax draws Indian cos to Ireland

HYDERABAD: A dozen Indian companies in the IT, pharma and manufacturing sectors are set to expand their footprint in Ireland. Lower corporate tax rate in the country, which is a part of the European Union, could be a key driver.

���We expect at least around half-a-dozen companies to set up operations there and employ locals and this could help revive the fledgling economy,��� said Brenden Ross, director, Europe & India, Investment and Development Agency, Ireland.

The global recession has hit the export-driven economy, which expects revival by 2011, said Mr Ross. Currently, the trade between India and Ireland is estimated to be around EURO 400 million.

There are about eight Indian companies operating in Ireland that include Reliance Life Sciences, Wockhardt, Ranbaxy, TCS and Crompton Greaves, among others.

In all, about 1,100 foreign companies have operations in Ireland across information technology, life sciences and financial services, which remain their prime areas of foreign direct investment (FDI).

Although the cost of labour may be four to five times higher than in India, it is cheaper compared to any other European country. But the corporate tax rate of 12.5% could be a major draw for Indian firms investing in Ireland, he said.

Apart from IT and pharma, companies in the financial services and manufacturing also operate in Ireland, which has a population of 4.4 million.