Economy

MOEA calls for closer Taiwan-India trade ties

MOEA Deputy Minister Cho Shih-chao (right) shakes hands with Jaspal Bindra, Standard Chartered Bank Asia CEO, at a forum on opportunities in India Aug. 6 in Taipei City. (CNA)

• Publication Date：08/07/2012
• Source： Taiwan Today

The ROC government will promote diversification of Taiwan enterprises’ investment in the Indian market to enhance bilateral trade and economic ties with the South Asian nation, Deputy Minister of Economic Affairs Cho Shih-chao said Aug. 6.

Speaking at a symposium on Indian trade and business opportunities jointly organized by the MOEA’s Bureau of Foreign Trade and Standard Chartered PLC, Cho said India’s vast market of 1.2 billion people cannot be ignored by export-oriented Taiwan in its efforts to expand its business presence overseas.

The MOEA has been actively assisting Taiwan enterprises in taking advantage of commercial opportunities in the Indian market, Cho said, noting that in 2010 the ministry established a special task force led by himself and focused on boosting Taiwan-India trade and economic ties.

These efforts have borne fruitful results, including the signing of bilateral agreements on customs cooperation and the avoidance of double taxation in July 2011, which have helped reduce operating costs for India-based Taiwan enterprises, as well as spur two-way cargo trade and improve convenience for travel between the two countries, Cho said.

Meanwhile, BOFT Director-General Chang Chun-fu noted that there has been clear progress in Taiwan-India economic and trade relations in recent years, noting that bilateral trade totaled US$7.6 billion in 2011, a 17 percent increase over the previous year’s level and an eightfold rise over the figure for 1995.

Chang said that while India is currently Taiwan’s 16th largest trading partner, there is much room for growth on this front. For example, he pointed out, Taiwan’s exports to India for the first half of 2012 contracted by roughly 30 percent over the same period a year earlier, so efforts need to be made to map out and implement more effective marketing approaches for this important overseas market.

The BOFT noted that India has the world’s second largest market by population and is forecast to have the largest middle class by the year 2030, so the MOEA has listed the country as one of the top priorities this year for market expansion efforts.

Jaspal Bindra, CEO of Asian operations for Standard Chartered, pointed out that enterprises from countries around the world have been vying to tap the massive Indian market. Taiwan, as a major producer of consumer electronics, is well-placed to take advantage of the strong consumer demand for such products in India, he said. (SB-THN)