India has refined its 'Look East' policy to 'Act East' policy

Taiwan and India investments reached US$6 billion in 2016 and with a total number of 90 Taiwanese companies being located and operating in India

TAIPEI (Taiwan News) -- In an article released by the Diplomat, experts have pointed out India's new "Act East" policy is aimed at serving as a leverage over China. The policy which has been put into effect more than ever since Prime Minister Narendra Modi assumed office in June 2014 has been the driving force for the improved ties between India and Taiwan. 

Despite of absence of any official diplomatic relations, India and Taiwan's bilateral ties have constantly improved since late 1990s. The improvement in the bilateral relations was first brought in by former Prime Minister of India Pamulaparti Venkata narasimha Rao, who with the help of his Taiwanese counterpart established unofficial relations in the year 1995 with the formation of the India Taipei Association (ITA) in Taipei. 

Ever since the establishment of ITA, India and Taiwan have agreed upon many initiatives relating to trade, investment, technology, education and even culture.

The article also recalls Prime Minister Narendra Modi as one of the few Indian diplomats who have visited Taiwan in 1999 in the capacity of the general secretary of the Bharatiya Janata Party (BJP), which is one of the two major parties in India along with the Indian National Congress. He also hosted the largest-ever Taiwanese business delegation in India in 2011 when he was Chief Minister of Gujarat.

Both India and Taiwan fear China's growing power both in the world as well as in the region. Taipei and New Delhi both think that China can be the factor behind the increased strategic ties between the two nations. 

According to the Diplomat, Taiwan and India investments reached US$6 billion in 2016 and with a total number of 90 Taiwanese companies being located and operating in India. 

Some Indian security experts do not think this is sufficient enough and believe Indian government should increase defense relations by sending a 'military attache' to Taiwan. Experts believe that the areas of cooperation between India and Taiwan are bound to be limited so long as their political relations remain negligible.