E-Paper
Ireland could be Indian companies’ smartest gateway to Europe
This article is authored by Kanishk Kumar, country director, India, IDA Ireland.
For Indian companies, Europe has often looked like a prize behind a glass wall. The opportunity was visible, valuable and large, but difficult to access at scale. Tariffs, customs rules, regulatory expectations, mobility questions, localisation demands and customer proximity often made Europe a market to export into, rather than a region to build within. The India–EU Free Trade Agreement, often dubbed as the mother of all deals, changes that conversation. Besides making trade between the two regions easier, it invites Indian businesses to rethink what European growth should look like in the next decade.
The first wave of India’s globalisation was built on export competitiveness, cost advantage, and delivery strength. The next wave will need something deeper: market presence, regulatory confidence, local innovation, and the ability to serve European customers from within the European ecosystem. The EU is already one of India’s most important economic partners, with EU–India trade valued at €180 billion in 2024. That makes the post-FTA moment less about discovering Europe and more about building a sharper strategy for it.
The importance of the FTA lies in the fact that it can move Indian companies from transactional trade to long-term integration. For exporters, it creates a pathway through preferential access, customs facilitation, rules of origin and stronger market predictability. For services companies, it strengthens the case for mobility, digital trade and customer-facing delivery. For SMEs, it opens a window to participate in European value chains with greater confidence. According to India’s ministry of commerce & industry, the agreement delivers market access for more than 99% of India’s export by trade value, making it one of the most commercially significant opportunities for Indian businesses looking at Europe.
But access is only the starting point. The more strategic question is where Indian companies should anchor their European ambitions. For many, Ireland presents a compelling answer.
The biggest value Ireland holds is combining EU market access with an English-speaking business environment, a strong talent base, deep sectoral clusters, regulatory familiarity and a long track record of hosting global companies. For Indian firms in technology, AI, life sciences, engineering, renewable energy and advanced manufacturing, Ireland can act as a practical European base rather than just a symbolic overseas office.
This is an opportunity for Indian technology and digital companies. The European customer is increasingly demanding solutions that are secure, compliant, innovative and locally supported. A company selling AI, cybersecurity, cloud, fintech, enterprise software or data solutions into Europe cannot rely only on offshore delivery. It needs proximity to customers, regulators, partners and talent. Ireland’s technology ecosystem already includes 16 of the world’s top 20 global technology companies . For Indian digital firms, this creates an environment where engineering, sales, compliance, customer success and product localisation can sit closer to the market.
Furthermore, Ireland is also emerging as a strong European base for AI-led digital operations. Since 2023, AI-related jobs have doubled in the country, reflecting a deepening demand for a highly qualified talent pool. This is buoyed by a policy environment that promotes innovation with responsible regulation, cybersecurity, data protection, and ethical AI adoption. Through initiatives like Digital Ireland strategy, the government is strengthening infrastructure, regulatory certainty, and applied AI capabilities, while also advocating for simpler, and more proportionate EU digital rules. For Indian companies looking to break ground in the EU region, this creates an attractive platform to build key functions close to customers, regulators, and important markets. For life sciences, the appeal is equally strong. Indian pharma, biotech, medtech and healthcare technology companies are moving beyond scale into complex generics, biosimilars, devices, diagnostics, digital health and advanced therapies. These areas demand regulatory credibility, product quality, testing, validation and deeper engagement with health care systems. Ireland’s mature life sciences ecosystem gives Indian companies a base to move closer to EU customers, regulators, research partners and innovation networks.
Ireland’s relevance also extends to advanced engineering. As India expands its ambitions in electronics, EV components, industrial automation, semiconductors and high-value manufacturing, Ireland’s strengths in chip design, advanced manufacturing, digital manufacturing and R&D can help Indian engineering and hardware-led companies build partnerships, access world-class innovative capabilities, specialised talent and strengthen industrial credibility in Europe.
The R&D dimension is critical. Indian companies entering Europe must be prepared to localise products, meet EU standards, protect intellectual property and innovate for market-specific requirements. Ireland’s innovation environment is supported by practical enablers, including R&D tax credits, RD&I supports, training support and research collaborations. Ireland provides R&D tax credit of 35% on qualifying expenditures from 2026, making innovation-led expansion more commercially attractive for companies that are serious about building long-term capability.
There is another advantage that Indian companies should not underestimate: compliance. Europe is one of the world’s most regulated markets across data, AI, finance, health, devices, sustainability, product quality and manufacturing standards. For some companies, this may look like a barrier. For stronger companies, it is a moat. An Irish base can help Indian businesses engage with EU expectations earlier, build compliance into product design, strengthen governance and reassure customers that they are serious about operating within European rules.
The post-FTA opportunity, therefore, should not be reduced to exports. That would be too narrow. The larger opportunity is to create Indian companies that are European in presence, global in ambition and Indian in entrepreneurial energy.
Before entering Europe, Indian businesses must be clear about how they plan to comply, compete, and scale. The winners won’t be the ones who rush in first, but the ones that enter with clarity.
The India–EU FTA opens the door. Ireland can help Indian companies with global ambitions access European opportunities for the long-term. For businesses willing to think beyond exports, this is the moment to turn European access into a key competitive advantage.
(The views expressed are personal)
This article is authored by Kanishk Kumar, country director, India, IDA Ireland.
