Doing Business in India VS Ireland: Which One Is the Best for You?
India VS Ireland- if you’re asked where you want to go to start a business, where would you like to make an investment?
If your answer is “I have to do my research first”, we understand you. It’s hard to make decisions especially when we are talking about money that could be lost when invested in the wrong way or in the wrong place. You need to examine what are the offerings of the two countries and give them proper points based on your preferred criteria.
Let’s examine the two countries fighting for business investors, India VS Ireland, and let’s find out which one is the best.
India Has the Following Economic Profile
India is the 7th largest country in the world. It shares a land border with Pakistan, China, Nepal, Bhutan, Bangladesh, and Myanmar. It is the 2nd most populous country in the world, having over a billion people. Within the next 10 years, it could surpass China and become the most populous country in the world. When that happens, more products and services are needed for the consumption of people.
Since the 1990s, India has been exerting effort to make the country an open economy. Some of the measures taken were economic liberalization, industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade.
Area of Investment
The utilization of manpower is a good area of investment in India. Sectors of IT, Business Outsourcing Services, and Software Development are just some of the growing industries. Aside from this, of course, India is known for agriculture and fishing. Other areas of investment include fast-moving consumer goods, housing finance, automobile, infrastructure, and pharmaceutical stocks.
Incentives and Attractions of India to Foreign Investors
There are several reasons why you should invest in India. The following are some of them:
- Labor Cost – The monthly minimum wage for an 8-hour work in India is 5280 INR or almost 70 USD while the labour cost in Ireland is 1,652.20 EUR, amounting to 1,939.02 USD when converted. The labour cost in India is extremely low compared to Ireland.
- Large Market – Not only India has a big population but also has different social economic classes of people as well. Different products and services can be created with different prices, sizes, and colours to serve the different preferences of the customers.
- Buying Power – Many investors are coming to India and they provide more jobs for the people. As this happens, the buying power of people increases. If many people in a country have jobs, economic activities are alive.
- Special Economic Zones (SEZ) – Foreign companies who will invest and operate in Special Economic Zones in India will enjoy certain tax exemptions for the next 10 years.
Ireland Has the Following Economic Profile
Ireland is a country in Northern Europe, comprising 32 counties. In 1921, they became independent from the United Kingdom. However, 6 counties in Northern Ireland chose to remain, which are still a part of the UK today.
The Irish people are known to be good at storytelling. They have acquired this from their Celtic bard’s ancestors who love recording and reciting the country’s history. Many good writers came from Ireland like James Joyce and Oscar Wilde.
When it comes to business, Ireland is known to be investor-friendly. It is included in those top countries that offer low tax burden, investor protection, and personal freedom.
The economic strategy that the government of Ireland employed was primarily its engagement with the European Union. In fact, they are one of those first 12 countries who became a member of the union during its early days when the euro currency was just starting in 2002. The strength of Ireland lies in its good industrial and tertiary fabric, modern infrastructure, pro-business government policies, stable domestic demand, and its young and skilled workers.
Area of Investment
Currently, the focus of Ireland is on the export sector, with foreign multinationals having key players in the country’s economy. Aside from this, Ireland is also doing well in the industry and services like manufacturing of basic goods particularly food, sports and fitness, automotive, construction, tourism, hotel, and business consulting. Investing in these would be a good move for investors.
Incentives and Attractions of Ireland to Foreign Investors
There are several reasons why you should invest in Ireland. The following are some of them:
- Access to the EU Market – When you invest in Ireland, you have access to the EU Market and its member countries. The movement of products, services, and people will be easier.
- A good tax regime – Ireland implements a 12.5% corporate tax, with 6.25% on profits from certain intellectual property. The country is a part of 73 treaties implementing double taxation. According to the World Bank Group, the tax system of Ireland is the most effective in the EU.
- Composition of young workers – The majority of workers in Ireland are youths. Thus, they are more productive.
The Call to Make a Decision Is Up to You on
Who is the winner in the battle of India VS Ireland? It depends on the current circumstances of the investor. Labour costs in Ireland could be expensive but the business could earn higher as well, so therefore, the profit is still good. However, in India, you can take advantage right away from their low-cost business operation as you don’t have to pay much for the salary of the employees, which is good for the startups.
In the economic battle between India VS Ireland, are you having difficulty to choose who is the winner for you? We at 3E Accounting would like to help. We’re among those known Company setup specialists on the planet and we will assist you in aspects where you’re having difficult decisions.