TAIPEI (Taiwan News) - As the government’s “New Southbound Policy” has entered into full force and effect, Taiwan is aiming for deeper trade relations with India, an economic bright spot that has enjoyed remarkable growth in recent years.
The policy, which aims to strengthen Taiwan’s trade and economic ties with a total of 18 countries in South and Southeast Asia, has underlined India as one of the six targeted countries to be included in the first phase.
India, the second-most populous country and the most populous democracy in the world, is also one of the most promising economies. Its economic growth is forecast to be between 6.75 percent and 7.5 percent in the coming financial year, according to official estimates.
In fact, India is projected to replace the United States as the world’s second largest economy after China by 2050.
In a report by the international professional services firm PwC released last week, it claims that by 2050, emerging economies will be the driving force of global economic growth, while India, Vietnam, and Bangladesh could be the three fastest growing economies.
“India will drive the shift in global economic power and could overtake the U.S. to be the world’s second largest economy in PPP (purchasing power parity) terms by 2050,” the report said.
While India is projected to continue its current strong growth rates, Taiwan has wasted no time in trying to build closer ties with the seventh-largest economy in the world.
Last week, a parliamentary delegation from Taiwan visited India to engage with their counterparts, an effort to increase parliamentary exchange and further assist the government in structuring the policy.
Business-wise, the Times of India reported last Friday that the Taiwan-based contract electronics maker Wistron Corp. (緯創) has announced its plan to set up a plant in India to roll out iPhones for tech giant Apple Inc.
On the other hand, Foxconn Technology Group, the world’s largest contract electronics maker as well as Apple’s major iPhone supplier, has already entered India a couple of years ago with operations in Sri City, Andhra Pradesh, Sriperumbudur in Tamil Nadu, and Navi Mumbai in Maharashtra, according to the report.
In January, Taiwan’s Representative to India, Tien Chung-kwang（田中光）, noted in a media interview the convergence of interest between the two nations.
While both share concerns over China’s assertiveness, India’s “Act East Policy”, introduced by Prime Minister Narendra Modi as an upgrade to the former “Look East Policy”, aims to bolster extensive strategic and economic ties with East and Southeast Asian countries.
The policy shares a critical mutual interest with Taiwan’s “New Southbound Policy,” said Tien, adding that it is now in the best interest of both nations to pursue stronger bilateral ties.