Double Tax Treaty Has Increased Indo-Irish Trade By 30%

by Jason Gorringe, Tax-News.com, London

16 October 2002

Irish Minister of Trade and Commerce, Michael Ahern announced this week that since the Double Tax Avoidance Convention (DTAC) was signed between Ireland and India in November 2000, bilateral trade between the two countries has grown consistently at a rate of 30%.

Speaking to the Indian Economic Times, Mr Ahern revealed that during the first seven months of this year, India exported 32.3 million euros worth of ready-made garments and clothing accessories to the Republic. Textile fibres also constituted a major chunk of the country's imports from India, at 10.7 million euros in the year to July.

'As far as exports from Ireland to India are concerned, telecom and sound equipment and computers constituted 22.9 million euros and 20.6 million euros,' Mr Ahern announced.

The Economic Times report revealed that Irish IT companies are looking to form alliances with their Indian counterparts, as the former are traditionally strong in the area of product develoment, while the latter tend to excel in service provision.

'The tie-up of Irish product cmpanies with Indian IT services companies will be an ideal synergy for tapping new markets,' Mr Ahern explained.

Other areas which have been identified for possible future joint ventures, according to the Irish Minister, include banking (with especial emphasis on internet banking), financial services, and biotechnology.

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