TAIPEI (Taipei News) – Recent statements from the Department of Investment Services of the Ministry of Economic Affairs (MOEA) 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 totaling over US$360 million were approved by MOEA. In 2017, there were only 8 investment applications totaling US$30.5 million.
The total foreign investments in India by Taiwanese companies is just over US$700 million, reports UDN, meaning investments in 2018 alone, amount for over half of all Taiwanese investments in India.
Taiwan has established four trade offices in India over the past few years. Since the year 2000, bilateral trade has increased six fold to stand at US$7 billion dollars’ worth of goods and services in 2018, reports First Post.
The Deputy Director of the Department of Investment Services, Chen Hsiu-chuan (陳秀全), says 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.
While India is also promoting its domestic “Made in India” policy, the central government and local states are actively courting foreign investors to establish manufacturing bases in India.
Chen says that more and more Taiwanese companies are starting to take notice, especially in the telecom and computer software industries.
With India’s population of 1.3 billion people, with an average age of 29, and an annual GDP growth rate of 7 percent, 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 representative of the Taipei Economic and Cultural Centre in India, Tien Chung-Kwang (田中光), 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,” said Tien, as reported by the First Post.