Ireland is to have its first openly gay prime minister after Leo Varadkar won the contest to lead the country’s governing Fine Gael party.

The 38-year-old cabinet minister is the son of an Indian immigrant and has been celebrated as the embodiment of profound generational and social changes coursing through the Catholic country.

In a victory speech at Dublin’s Mansion house on Friday, Mr Varadakar said every proud parent could dream big dreams for their children.

"If my election today shows anything, it is that prejudice has no hold in this Republic," he said to thunderous applause.

"I know when my father travelled 5,000 miles to build a new home in Ireland, I doubt that he ever dreamed that one day his son would grow up to be its leader and despite his differences, his son would be judged by his actions not his identity.”