By Sumit Kumar
Taiwan-India economic ties have witnessed significant progress over the last decade, with Taiwan’s representative to India Mumin Chen (陳牧民) and India’s Director General Ninad Deshpande aiming to further elevate bilateral ties.
It is in this context that a delegation from the Confederation of Indian Industry visited Taipei on April 13-17 to explore bilateral cooperation in the automotive, electronics, and smart mobility sectors. Here the focus was on strengthening supply chain resilience and manufacturing partnerships.
In this context, it can be recalled that the two sides have taken a slew of measures to institutionalise economic cooperation. In so doing, in 2002, the India Taipei Association (ITA) aand Taipei Economic and Cultural Center (TECC) signed an agreement to promote and protect investments.
In 2006, the Taiwan-India Cooperation Council, a private organization, was established in Taipei. The two nations signed a double taxation avoidance agreement and a customs cooperation agreement in 2011.
In 2007, the ITA and TECC signed a memorandum of understanding on behalf of India’s Ministry of Science and Technology and the National Science Council. A pact signed in December institutionalized cooperation in engineering, manufacturing, and research and development.
The Bilateral Investment Agreement in 2018, the Intellectual Property Rights agreement in 2022, and the Mutual Recognition Agreement on Organic Products in 2024 boosted cooperation in the fields of agriculture and other sectors. Furthermore, the Taiwan External Trade Development Council and Taipei Computer Association have established offices in Mumbai, Chennai, Kolkata and Bengaluru to promote trade activities.
Southbound policy
These and other efforts to institutionalize economic ties have increased the volume of bilateral trade from NT$37.75 billion (US$1.2 billion) in 2000 to NT$393.25 billion in 2025.
President Lai Ching-te’s (賴清德) New Southbound Policy, along with Indian Prime Minister Narendra Modi’s Act East Policy, could play a vital role in further deepening economic ties between the two nations.
This is evident from the fact that in 2014, the India Electronics and Semiconductor Association and Taipei Computer Association signed a memorandum to promote local manufacturing in the field of semiconductors and electronics.
In August 2015, Foxconn, one of the largest hardware manufacturers in the world, announced an investment of NT$157.25 billion in India. Also, the establishment of a semiconductor plant in Dholera, Gujarat state, through a collaboration between India’s Tata Group and Powerchip Semiconductor Manufacturing Corp has marked a new beginning in fostering bilateral ties in the semiconductor sector.
The recent Taiwan Expo in India showcased cutting-edge innovations in edge AI, industrial computing, high-speed storage, and smart mobility, with the participation of 17 award-winning Taiwanese companies that included Wincomm, Asus, and Innodisk.
Bilateral ties
Over the past 10 years Acer, D-Link Corp and Transcend have invested about NT$31.45 billion in India. China Synthetic Rubber has expressed the desire to invest about NT$10.38 billion in the state of Andhra Pradesh.
Meanwhile, China Steel has also proposed to make a NT$5.66 billion investment in India. CPC Corp, Taiwan, has proposed a NT$188.68 billion investment in India, which would surely boost the Make in India program and petrochemical industry.
Of course, the two sides have their own reasons to transform bilateral ties.
Given its huge foreign reserves and expertise in the fields of hardware manufacturing, mine exploration, electronics, food processing and others, Taiwan could play a vital role in making a success of the Modi government’s Make in India, Digital India and Skill India initiatives.
For instance, if India’s expertise in software and Taiwan’s hardware skills came together, it would be beneficial to both sides. At the same time, by providing a huge market, India could significantly reduce the economic ties between China and Taiwan. Meanwhile, with the use of Taiwan’s agrotechnology, India could transform its agriculture as well.
For Taiwan, the Indian market offers an opportunity to invest at a time when China has become increasingly aggressive. Robust trade with India would help Taiwan reduce its economic dependency on China.
Pillar of economy
Notwithstanding significant convergence of interests between India and Taiwan, apprehensions about safety and the security of women due to the presence of Indian workers in Taiwan have cast dark clouds over the economic prospects of both sides.
It is imperative for Taiwan to understand that India’s skilled and non-skilled labour force has been a pillar of the global economy. Domestic issues in India should not be used by Taiwan’s opposition parties as an exercise to derail the improving ties between New Delhi and Taipei.
In fact, Taiwanese can draw a conclusion based on their own experiences of the behaviour of more than 6,000 Indians in Taiwan. The two nations should not allow external powers to negatively impact their bilateral ties.
At the same time, they should focus on strengthening ties, especially in the economic sphere. They should certainly consider signing a free-trade agreement.
People-to-people engagement through conferences, exchange programs and other means should be increased. These and other efforts will surely bring India-Taiwan economic ties to a new height.
