India and Ireland have a natural affinity which should facilitate further trade and investment opportunities, claims Ireland's consul general in Bangalore, writes MARY FITZGERALDForeign Affairs Correspondent in Bangalore

IN THE 10 years she has spent as Ireland’s honorary consul in Bangalore, Kiran Mazumdar-Shaw has observed the relationship with India Inc grow as Irish businesses explore the potential of its surging economy.

Said to be India’s richest woman, Shaw has steered Biocon, the country’s leading biotechnology firm, since the late 1970s when she set up the company as a joint venture with Biocon in Ireland (the Irish operation was subsequently taken over by Unilever).

Biocon, headquartered in the city known as India’s Silicon Valley, now encompasses a wide range of products and services, underpinned by a research focus on diabetes, oncology and auto-immune disease.

“Her bread-and-butter business has been the production of generic drugs, including statins or cholesterol-lowering drugs . . . the project of pride, however, remains oral insulin,” wrote Vikas Pota in his recent book India Inc, which profiled 10 top-ranked Indian entrepreneurs.

Shares in Biocon have risen by 27 per cent this year, boosted by reports that Pfizer was mulling buying a stake in or partnering with the firm for its oral insulin product, which is expected to be launched next year.

Shaw, who served on the board of Science Foundation Ireland (SFI) and travels to Ireland every year, says there is much about Ireland that Indian investors find appealing, but Ireland needs to market itself better.

“I think what happened with Ireland is you got very complacent during the boom years. There was a sense that we don’t have to try very hard, everyone is going to come to us,” she says.

“Once that complacency sets in, you don’t market yourself well enough because you just think you have everything going for you.”

In Shaw’s view, Ireland must emphasise its advantages over other EU countries, including low corporate tax, if it is to lure Indian companies eyeing the European market.

“I certainly believe that Ireland can position itself very nicely as the hub for a very tax-effective European operation,” she says.

“That is a very good selling point for you and it always has been. I think you need to improve that image and create more awareness of it. You have to make it more attractive than others.

“That is easier said than done – it’s not about throwing money or promising things, it’s about having a very credible policy, a stable policy where you are saying this is what we are willing to do.

“I think Ireland really has a lot going for it. You can very easily rebuild and get back to that original position but it will take a bit of time because you had a setback. You were unprepared, but learn from that mistake and build that sustainable position.”

India and Ireland, she believes, have a “natural affinity and fit” which should help further open up trade and investment opportunities.

“A lot of Indian companies are beginning to look globally and look at new markets in Europe and other parts of the world. If you could attract those kinds of businesses into an Irish base, I think that would be very interesting.

“For example, if Tata needs to set up a nano plant for Europe, you should make sure it is in Ireland, or if an Indian IT company wants to set up base in Europe, make sure you attract them to Ireland. You have to put Ireland on everybody’s map and impress upon people that Ireland is a wonderful investment destination.”

Earlier this year, Minakshi Batra, director of IDA Ireland’s operations in India, told the Economic Times, India’s leading business publication, that she expected $100 million worth of investment by Indian companies in Ireland over the next 18 months.

“Ireland, with its young, educated population, can offer a new horizon for India. IT is a strong sector in Ireland and Indian product development is moving up the value chain. There is a great potential for companies from both countries to tap,” Batra told Bangalore-based newspaper the Deccan Herald earlier this month.

Shaw, who was included in this year’s Time magazine list of the world’s 100 most influential people, says Ireland’s innovation capabilities should also be harnessed further. She singles out Trinity College for praise in this area.

“There are opportunities for you to start using that innovation to further build your relationships with India and China, which really want to learn about innovation, source innovation and be development partners for innovation.

“That could be a very interesting way of building partnerships and collaborations.”

Shaw believes education and tourism are two other areas with huge potential when it comes to Ireland’s courting of India’s elite and its burgeoning middle class. Stacks of Tourism Ireland brochures tailored for the Indian market can be found in the Irish consul’s office, which is located on Biocon’s premises.

“I know a lot of Indian students see Ireland as an education destination and I know Indian tourists look at Ireland increasingly as a nice tourist destination,” she says. “You need to take advantage of that and build on it. Tourism, in particular, has a very big earning potential for Ireland and it’s an easy one to develop.”

Like many in India, Shaw has observed the chaotic preparations for next week’s Commonwealth Games in Delhi with some dismay.

“It’s a shame because India had the opportunity to showcase its talent, skills and competence but, instead, the worst of India has come to the fore,” she says, adding that it highlights the contrast between India’s private sector and public sector.

For this reason, she argues, the debacle will have little impact on trade and investment.

“Everyone who comes to India knows that there are two Indias – the public and private sector – and they know the private sector is world class. I don’t think anyone is going to look at this and say we shouldn’t do business with India. It is more an issue of national pride.”