Technology and Innovation

Focusing on India’s burgeoning tech scene, startups, innovation hubs, and technological advancements that are shaping modern India.

December 17 2023

Navigating New Horizons: The Pivotal Role of Commercial Ties in Advancing India-Taiwan Relations

pk Business and Economy, Education and Learning, Technology and Innovation india, india china relations, india taiwan culture, india taiwan diplomatic ties, india taiwan relations, indian economy, taiwan business in india 0

Introduction

India and Taiwan, two influential players in the Indo-Pacific region, are charting a new course in their bilateral relations. Historically, the ties between the two have been ‘unofficial’ yet cordial, largely due to the geopolitical complexities and the shadow of Chinese influence. However, the contemporary international landscape, marked by the COVID-19 pandemic, China’s increasing assertiveness, and Taiwan’s critical role in regional geopolitics, has spurred India to recalibrate its stance towards the island nation. Under the Democratic Progressive Party (DPP), Taiwan is simultaneously seeking to diversify its international engagements, striving to alleviate its dependence on China and thwart Beijing’s attempts to isolate it globally. This article, inspired by insights from the ORF-TAEF report, delves into the burgeoning commercial ties between India and Taiwan and suggests strategic measures to further fortify this promising partnership.

Unofficial Ties: The Bedrock of India-Taiwan Relations

The relationship between India and Taiwan has always thrived on ‘unofficial’ ties. The establishment of representative offices, serving as de facto embassies, is a testament to the countries’ mutual desire for closer relations while navigating the sensitivities of international diplomacy. Despite the absence of formal diplomatic ties, these offices have facilitated a multitude of engagements ranging from cultural exchanges to economic cooperation, laying a solid foundation for the current and future state of India-Taiwan relations.

The Shift: Catalyzing Factors in the New Era

The transformation in India-Taiwan relations didn’t occur in a vacuum. Several factors have catalyzed this shift, most notably the COVID-19 pandemic. The global health crisis exposed vulnerabilities in supply chains, particularly those over-reliant on China, prompting countries to diversify their economic partnerships. For India, this meant looking towards alternative partners like Taiwan, known for its prowess in technology and manufacturing.

Furthermore, China’s aggressive postures in the region have been a cause for concern, propelling India to strengthen ties with like-minded democracies. Taiwan’s strategic location and its contentious relationship with China make it an indispensable ally for India in its pursuit of a free and open Indo-Pacific.

Taiwan, under the DPP, has been proactive in its ‘New Southbound Policy’, aiming to enhance cooperation with South and Southeast Asian countries. This policy aligns with India’s ‘Act East Policy’, creating a convergence of interests that underscores the strategic importance of robust India-Taiwan relations.

Economic Frontiers: The Growth of Commercial Ties

The burgeoning economic partnership between India and Taiwan is arguably the most dynamic facet of their relationship. According to the ORF-TAEF report, bilateral trade has been on an upward trajectory, touching almost USD 7.7 billion in 2021. Taiwanese investments in India are also seeing a surge, with significant capital flowing into sectors like information technology, healthcare, and auto components.

One of the key areas of collaboration is the technology sector. Taiwan, a global leader in semiconductors and electronics, holds immense potential for India’s aspirations in digital innovation and manufacturing. The push for ‘Make in India’ and ‘Digital India’ finds synergy with Taiwan’s expertise, presenting opportunities for joint ventures, knowledge sharing, and skill development.

Furthermore, the Small and Medium Enterprises (SMEs) sector forms an essential part of the economic dialogue. Both India and Taiwan recognise the role of SMEs in innovation and job creation. Collaborative initiatives have been undertaken to provide these enterprises with the resources, market access, and technological acumen needed for international competitiveness.

Policy Recommendations: Pathways to a Stronger Partnership

To further enhance India-Taiwan commercial ties, the ORF-TAEF report suggests several policy recommendations. Firstly, there’s a need to expedite discussions on trade agreements. A Bilateral Investment Agreement or a Free Trade Agreement could provide the necessary legal framework to protect and encourage investments.

Secondly, facilitating people-to-people exchanges through eased visa policies, educational scholarships, and cultural programs can foster mutual understanding and goodwill, an essential soft power component.

Thirdly, India and Taiwan should prioritize joint R&D projects, particularly in fields like Artificial Intelligence, 5G, and green technologies. Establishing technology parks or innovation hubs could stimulate research, attract talent, and catalyse the commercialization of innovations.

Finally, both countries need to enhance their strategic dialogue, encompassing not just economic and cultural aspects but also regional security concerns. Regular consultations between policymakers, experts, and business leaders can facilitate a comprehensive approach to bilateral relations.

Conclusion

The strengthening of commercial ties between India and Taiwan marks a new chapter in their bilateral relations, set against the backdrop of shifting geopolitical currents. The convergence of democratic values shared strategic interests, and complementary economic capabilities provides a unique opportunity for both nations to forge a partnership that transcends traditional diplomacy. As they navigate the challenges and prospects of this evolving relationship, the role of commercial ties remains pivotal in realizing the full potential of India-Taiwan cooperation.

December 17 2023

Strengthening Bonds: The Growth and Opportunities in Taiwan-India Relations

pk Business and Economy, Education and Learning, Technology and Innovation india, india economy, india taiwan culture, india taiwan diplomatic ties, india taiwan relations, invest in india, make in india 0

Introduction

In an era of burgeoning international relations, the bond between Taiwan and India stands out as a beacon of mutual growth and cultural exchange. For the avid traveller, the depth of these ties offers a rich tapestry of experiences, underscoring the importance of understanding the dynamics that influence their journey. This article delves into the multifaceted Taiwan-India relationship, spotlighting historical milestones, economic partnerships, scientific collaboration, educational initiatives, and cultural exchanges that have shaped the interaction between these two Asian giants.

General Background and Recent Developments

The foundation of Taiwan-India relations was solidified in the early 1990s when India’s “Look East Policy” led to eased visa restrictions and burgeoning bilateral interest. Since the establishment of representative offices in 1995, both nations have enjoyed a robust relationship characterized by significant diplomatic, economic, and cultural milestones.

Key agreements, such as the “Double Taxation Avoidance Agreement” and the “Customs Mutual Assistance Agreement” in 2011, have catalyzed economic ties. Furthermore, the opening of the Taipei Economic and Cultural Center in Chennai in 2012 and the signing of various agreements and MOUs have further solidified this relationship. High-ranking official visits and the inclusion of Taiwan nationals in India’s e-Tourism visa-on-arrival (eTV) program demonstrate the shared commitment to fostering a strong bond.

Trade, Commerce, and Investment Relationships

Economic cooperation has been a cornerstone of the Taiwan-India partnership, with bilateral trade soaring to USD 7.7 billion in 2021. Approximately 106 Taiwanese companies operate in India, contributing around USD 1.5 billion to sectors like ICT, healthcare, and automotive components, among others. The establishment of a Taiwanese electronics manufacturing cluster in Karnataka signifies deeper supply chain collaboration.

Small and medium enterprises (SMEs) also play a pivotal role, with both governments focusing on policy sharing, innovation, and market development. Continued engagement in initiatives like “Make in India,” and “Digital India,” underscores the commitment to mutual economic prosperity.

Science & Technology Cooperation

Since the signing of the MOU on Scientific and Technological Cooperation in 2007, Taiwan and India have embarked on 115 joint projects and hosted 25 bilateral seminars. The collaboration spans critical sectors such as sustainable energy, healthcare, and digital technology. This partnership underscores the shared dedication to harnessing science for societal benefit and reflects the countries’ mutual ambition to be pioneers in technological innovation.

Education Cooperation

Educational exchanges between Taiwan and India have seen dynamic growth. Over 400 Indian students have benefited from Taiwanese scholarships, and there’s an active pursuit to increase the number of Indian students in Taiwan, which currently stands at 2,800. Initiatives like the MOU signed with the Association of Indian Universities facilitate academic collaboration and recognition of qualifications. Additionally, 26 Taiwan Education Centers in India promote Mandarin learning, thereby fostering cultural understanding.

Cultural Exchanges

Cultural diplomacy forms the heart of Taiwan-India relations. From film festivals to performing arts, both countries actively showcase their rich cultural heritage. Groups like the Ju Percussion Group and Ming Hwa Yuan Art & Culture Group have performed in India, while the Youth Ambassadors program promotes people-to-people exchanges. The recent performances by the National Dong Hwa University and artist Martin Musa Musaubach highlight the continuous cultural dialogue.

Conclusion

The Taiwan-India relationship is a testament to the power of international cooperation. For travellers from Taiwan venturing into India, this bond translates into a welcoming environment steeped in mutual respect and interest. As NiHao Yindu continues to guide you through the marvels of India, it’s essential to appreciate the diplomatic ties, economic collaborations, and cultural exchanges that make your journey unique. As you immerse yourself in the Indian experience, remember that you are also treading along the pathways of a rich, shared history between Taiwan and India.