Taiwan is pushing forward to establish a Taiwan-India FTA, Foreign Minister Lin Chia-lung announced on Wednesday. He told The Statesman that this agreement would help both countries build a strong and comprehensive economic partnership. Moreover, Lin explained that the Taiwan-India FTA would provide an effective response to challenges caused by US tariffs. This move reflects Taiwan’s desire to diversify trade and reduce dependence on certain markets.
Deputy Trade Representative Yen Huai-shing highlighted the recent UK-India trade pact as a useful example for Taiwan-India FTA negotiations. She emphasized that the agreement could promote collaboration, particularly in semiconductor manufacturing. Taiwan leads in hardware technology, while India excels in software development. Therefore, the two economies complement each other perfectly. This synergy could foster significant innovation and growth.
In addition, Yen pointed out that India plays a key role in Taiwan’s New Southbound Policy. This policy aims to strengthen ties with 18 countries in South and Southeast Asia. Several Taiwanese companies, including the major iPhone assembler Foxconn, have already set up factories in India. This trend reflects the ongoing global shift in supply chains. However, Yen noted that India must enhance incentives to attract more Taiwanese investors and encourage business expansion.
Meanwhile, Liu Da-nien, director of the Chung-Hua Institution for Economic Research, stressed the importance of this partnership. He said the economies complement each other well, with India’s software strength balancing Taiwan’s hardware expertise. However, Liu warned that India might face pressure from China if it pursues closer ties with Taiwan. Despite this challenge, the potential benefits from a Taiwan-India FTA make the effort worthwhile.
Furthermore, Foreign Minister Lin underlined that the Taiwan-India FTA would help both countries create a more resilient and diversified trade environment. In the face of global economic uncertainties, this deal could provide new growth opportunities and reduce risks from protectionism.
To conclude, Taiwan’s officials are actively pursuing a Taiwan-India FTA as a key step toward strengthening economic cooperation. If successful, this agreement would enhance bilateral trade and semiconductor collaboration. Both sides seem eager but must navigate geopolitical challenges carefully.
