This year would mark the 30th anniversary of the establishment of the India Taipei Association (ITA) in Taipei and the Taipei Economic and Cultural Center (TECC) in New Delhi. From the vision of “Look East” in the 1990s, India’s policy has evolved into a resolute “Act East,” which complements Taiwan’s “New Southbound Policy.”
In these three decades, India and Taiwan have forged a rare partnership — one rooted in shared democratic values, a commitment to openness and pluralism, and clear complementarities in trade and technology.
The government of India has rolled out the red carpet for Taiwanese investors with attractive financial incentives through its production-linked incentive (PLI) schemes as well as through hand holding at all stages of the investment process. More than 260 Taiwanese companies operate in India, led by renowned names such as Foxconn, Pegatron and Wistron, which excel in the manufacturing and assembly of smartphones, consumer electronics and other technology products. Most of these companies have received close real-time support from the government whenever they approached the officials.
This investment partnership has further benefited our trade, technology and talent partnerships. It has significantly boosted bilateral trade, which now exceeds US$10 billion annually. On technology, one can witness complex partnerships between Taiwanese companies, such as Powerchip Semiconductor Manufacturing Corp (PSMC), Foxconn, Phison Electronics Corp and AvanStrate Taiwan, and Indian companies, such as Tata Electronics, HCL Technologies, Vedanta, VVDN Technologies, Dixon and Micromax. These partnerships are aimed to leverage the complementarities in the technological capacities of both economies. Taiwanese companies such as Taiwan Semiconductor Manufacturing Corp, Delta Electronics Inc and MediaTek Inc have also increasingly leveraged Indian talent.
The surge in India-Taiwan trade and technology ties also rests on sound geoeconomic logic. As Taiwan seeks to diversify its supply chains, India emerges as an ideal partner, offering a vast domestic market, a youthful workforce and a robust growth rate of 7 to 8 percent. Furthermore, India’s strategic positioning — bridging East and West, and linking the Global North with the Global South — provides Taiwanese companies with a strong platform for accessing markets in Africa, the Middle East and Europe.
There remains vast potential in high-tech sectors such as electric vehicles, artificial intelligence (AI), drones and advanced manufacturing. Joint ventures in these fields could transform India and Taiwan from mere trading partners into cocreators of cutting-edge innovation, reshaping the global technology landscape.
Building on our increasing familiarity and past experiences, Indian and Taiwanese companies should develop complex partnerships that leverage a broad spectrum of complementary skill sets — an approach exemplified by recent joint ventures such as TATA-PSMC. The time has come to shift from “extensive cooperation” to “intensive innovation.”
The recently announced US$11 billion semiconductor fabrication plant in Dholera, India, a collaboration between Tata Electronics and PSMC, along with several outsourced semiconductor assembly and test ventures, marks just the beginning of a promising India-Taiwan semiconductor story. As India advances its indigenous chip-making capabilities, the stage is set for a deeper, transformative partnership.
Synergy and complementarity lie at the heart of the India-Taiwan trade and technology partnership. Taiwan’s robust manufacturing capabilities align seamlessly with India’s strengths in software and information technology, highlighted by the global reputation of Indian engineers. In the semiconductor sector, Taiwan is known as the “fab of the world,” while India serves as the “talent house,” contributing more than 20 percent of global chip design talent. Major firms like AMD, Intel, Samsung and MediaTek depend on India for design and R&D.
In the field of AI, India possesses unique strengths. Nvidia founder and CEO Jensen Huang (黃仁勳) a few months back remarked: “A third of Nvidia is in India. Nvidia’s senior leadership is Indian, and a third of the company’s engineers are here too. India designs Nvidia’s chips and develops many of its algorithms.”
While announcing US$3 billion investment over two years in India’s cloud and AI infrastructure, Microsoft Corp CEO Satya Nadella stated: “India is rapidly becoming a leader in AI innovation, unlocking new opportunities across the country.”
With access to essential resources needed to fuel AI capabilities, India could play a vital role in Taiwan’s vision of becoming an “AI island.”
Since 1995, the ITA has made significant strides in fostering mutual awareness between our two societies. In recent years, the ITA has established an effective framework for cooperation with the TECC, entering various agreements on investment, labor mobility and more. Initiatives such as “Taiwan Plus,” a dedicated single-window service in Invest India, have facilitated Taiwanese investors in setting up operations in India. Additionally, the TECC opened a third office in Mumbai in October last year to deepen cooperation in areas of mutual interest.
As we celebrate three decades of India-Taiwan relations, this year stands as a pivotal moment to elevate this partnership. Over the years, both nations have built tremendous trust at every level, fostering an inherent familiarity that positions us as “natural partners.”
This year would undoubtedly be a “Year of India-Taiwan Collaboration for Prosperity and Enduring Friendship,” as both sides harness their combined strengths to drive exponential growth and innovation. This transformative phase promises deeper collaboration across every sector — trade, technology, education, cultural exchange and beyond.
Manharsinh Yadav is the director-general of the India Taipei Association.
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