The ongoing dispute between China and Taiwan has not gone unnoticed, and India has shown support for Taiwan on various issues. Taiwan's Foreign Minister, Joseph Wu, recently expressed the desire to strengthen relations with India, emphasizing the potential for Taiwanese companies to establish manufacturing bases in India through free trade agreements.
Encouraging Taiwanese Companies:
Wu highlighted that Taiwan is encouraging its companies that do not find the Chinese market lucrative to consider relocating their businesses to India for manufacturing purposes. Recognizing India's rapid emergence as a growing power and its economic progress, Wu believes that a free trade agreement between India and Taiwan would eliminate trade barriers, enabling Taiwanese companies to establish manufacturing centers without paying exorbitant tariffs for various components and raw materials.
Why India is Beneficial for Taiwan:
Taiwan produces over 70% of the world's semiconductors and more than 90% of advanced chips, essential components for smartphones, cars, data centers, fighter jets, and AI technologies. India has already entered into several agreements with Taiwan Semiconductor Manufacturing Corporation (TSMC), the world's largest chip manufacturer, to establish manufacturing facilities in India. Notably, Apple is among the major customers of this company.
Gaining Momentum in Business Relations:
Wu mentioned that the time has come to initiate talks between Taipei and New Delhi on a bilateral investment agreement. Both sides have already conducted studies and had preliminary discussions on a potential free trade agreement. Taiwanese investors are eager to invest in India, and the semiconductor cooperation between Taiwan and India enjoys strong support from leaders in both countries.
India's Economic Strength and Potential:
Wu recognized India as an emerging power that is rapidly progressing. He acknowledged the hard work and determination of the Indian people, emphasizing that India possesses economic strength for the future. With India becoming increasingly powerful, it is crucial to nurture and maintain a positive relationship with the country.
Conclusion:
Taiwan's foreign minister, Joseph Wu, has expressed a keen interest in strengthening ties with India, particularly in terms of manufacturing opportunities. By facilitating a free trade agreement and encouraging Taiwanese companies to establish manufacturing bases in India, both countries can benefit economically. With Taiwan's expertise in semiconductor production and India's growing prominence, the prospects for collaboration are promising. As India continues to evolve as a formidable force, it is hoped that the relationship between Taiwan and India will flourish, opening new avenues for economic cooperation.
