Comment: Ireland is well placed to capitalise on the sub-continent's burgeoning economy.

The impending trade mission to India brings into relief the growing internationalisation of Ireland and the need to develop new markets, coming as it does after last year's successful mission to China. Economists have long been forecasting India as the "next big thing" and, after years of promise, its economic progress is becoming apparent. This is good news, not just for India's vast population, but also for Ireland, in terms of trade potential.

Last July the World Bank's GDP rankings put India in the world's top 10 largest economies, and the third biggest in Asia with annual growth rates of 6-6.9 per cent. Its exports have more than doubled and its inward foreign direct investment is in the region of $5.5 billion (€4.5 billion).

India's historically semi-closed economy has hampered growth and development. However, successive rounds of economic reforms, including reductions in tariff barriers, led in recent times by prime minister Dr Manmohan Singh, are changing India economically and creating a more attractive market.

The combination of India's growth, population and human capital makes it an exciting trading prospect for Irish businesses. Our common colonial history means that our legal and financial systems are similarly influenced by the Westminster political model and we share English as the language of commerce.

Transportation links between the two countries have been enhanced and are more cost effective with new services via Dubai and Bahrain courtesy of Aer Lingus and Gulf Air.

All of these factors combine to make it easier to do business with India than with other parts of Asia.

India is attracting more Irish business prospects. There are more than 150 Irish companies currently doing business with India and Ireland has increased its Indian-focused resources in the context of the Government's Asia strategy.

The increase in bilateral trade activity between Ireland and India in recent years is, for the most part, due to growing links with the IT sector in India. This is an area where Ireland is uniquely placed to capitalise. The great dream of global software development leaders is judicious use of time zones to rapidly enhance productivity via continuous 24/7 software development cycles. Ireland being equidistant from the west coast of the US and India presents a huge opportunity to be the "eight-hour bridge" in software development terms between Silicon Valley and Bangalore.

Recent Government efforts in this regard via Science Foundation Ireland funding and the fourth-level education initiative announced in the Budget are significant elements in making good on this vision.

With more than one-sixth of the world's population and a middle-class market with the potential to grow to more than 300 million people in the next 10 years, India offers significant marketing opportunities for Irish luxury good exporters. Just as the sales of products such as Rolex watches have rocketed in China in tandem with its economic expansion, there will be opportunities for Irish companies such as Waterford Crystal and Newbridge to thrive in India with the correct marketing strategy.

Enterprise Ireland has also identified opportunities for Irish companies in sectors such as medical equipment, automotive components, food, tradeable services, pharmaceuticals, chemicals and engineering goods.

India's growth will produce huge demand for enhanced education and health services that Irish companies should be placed to meet either alone, or with Indian partners.

The education sector shows particular promise. India, with China, is expected to dominate the predicted increase in demand for overseas further education in the decades ahead. There are currently more than 1,000 Indian students in third-level education in Ireland. With the Indian population standing at 1.16 billion there is no reason to think that that number could not rise substantially.

In addition, India's stellar growth offers enormous opportunities to Irish firms to contribute to meeting infrastructural deficits in the form of motorways, railways, bridges and powerplants. If Ireland can fully master the public private partnership model here, there is great potential to provide a template for the roll-out of similarly funded projects in rapidly developing economies such as India.

Besides its potential as an export market and as a pool of untapped consumers, India could play an integral part in restoring the competitiveness of Irish companies. The urgency of sourcing cheaper inputs into Irish produced goods and services is well documented. As noted in an Enterprise Strategy Group report, too many indigenous companies in Ireland are price takers rather than price makers. India represents a promising source of lower cost inputs for Irish manufactured goods.

While we regularly hear concerns regarding off-shoring and out-sourcing, in an economy of almost full employment Ireland should not be afraid of outsourcing per se. Within one of the most globally competitive multinationals in the world, Dell, the two most profitable outlets are their Limerick, Ireland and Austin, Texas enterprises.

There is a case to be made for specific types of jobs to be off-shored on occasion just as industries and multinationals around the world off-shored jobs to Ireland in the past. However, these will be more than adequately compensated for by growth in other areas such as services, many of which cannot move outside Ireland.

India can and should be part of the solution for Ireland both as a major new market and as a source for lower-cost inputs in a mutually rewarding relationship.

John Dunne is chief executive of the Chambers of Commerce of Ireland