According to the trade body Chairman, James Huang, Taiwanese firms relocate supply chains from China to India, boosting India’s manufacturing and bilateral trade.
As global trade concerns continue to escalate, Indian businesses are gaining prominence in the shifting economic landscape. Taiwanese businesses, in response to these changes, are now redirecting their supply chains from China to India. This strategic move is part of the efforts to strengthen commercial ties between Taipei and New Delhi.
Like most countries, India has no formal ties with Chinese-claimed Taiwan, but the two have established a close business relationship. India is keen on more investment from the major chip-producing nation to aid its efforts to boost manufacturing.
Additionally , James Huang, chairman of the Taiwan External Trade Development Council, emphasised Taiwan’s programmes to train Indian students and talent in semiconductor technology, laying the groundwork for future collaboration.
This emphasis on future collaboration is a testament to the potential of the economic ties between India and Taiwan. Taiwan’s supply chain shift has centred on the mobile phone assembly and footwear industries. The two-way commerce between India and Taiwan totalled $10.1 billion in the fiscal year ending March 2024.
Over the past five years leading up to 2023, Taiwan’s investments in India have grown substantially, reaching $665 million. This surge is primarily attributed to the trade conflict between the US and China. James Huang, chairman of the Taiwan External Trade Development Council, notes that Taiwan’s FDI into India from 2006 to 2017 was a mere $277 million.
