Taipei, May 18, 2019
Recent statements from the Department of Investment Services of the Ministry of Economic Affairs (MOEA) of Taiwan indicate that the economic and trade partnership between India and Taiwan is on track for steady growth over the coming years.
In 2018, total Taiwanese investment in India increased by a multiple of 12, with 21 applications for major investments totalling over US$360 million were approved by MOEA. In 2017, there were only eight investment applications totalling US$30.5 million.
The total foreign investments in India by Taiwanese companies is just over US$700 million, reports UDN. Accounting for more than half of all Taiwanese investments in India in 2018.
Taiwan has established four trade offices in India over the past few years.
According to First Post, since 2000, bilateral trade in goods and services increased six fold to reach US$7 billion last year.
Investment Services Department Deputy Director Chen Hsiu-chuan said that compared to other partner nations of the Southbound Policy, investment in India is still low.
However, the growth rate is promising and indicates that India is set to be a major market for Taiwanese businesses in the years ahead.
Courting Foreign Investors
While India is also promoting its ‘Make in India’ Policy, the Central Government and local states are actively courting foreign investors to establish manufacturing bases in India.
Chen said that more and more Taiwanese companies are starting to take notice, especially in the telecom and computer software industries.
With its population of 1.3 billion people, at average age of 29, and an annual GDP growth rate of 7%, India is a rapidly emerging market with lots of potential for foreign companies.
Many in India also see improved ties with Taiwan as an excellent choice to the balance economic risk associated with business partnerships in China.
Speaking to the media last week, the Taipei Economic and Cultural Centre Representative in India Tien Chung-Kwang expressed confidence that after India completes its election process on May 23 that relations would only continue to improve between the two nations.
“Even without a diplomatic relationship, our substantial relations are very strong, stronger than with some countries with whom we have formal relations,” he said in a First Post Report.
Duncan DeAeth is a Staff Writer at Taiwan News. The above article was sent to us by the Taipei-based Taiwan-Asia Exchange Foundation.