As economic and strategic interests converge in today’s increasingly globalized world, the relationship between Taiwan and India stands poised to further blossom and take on new significance for both sides. This development, which promises to strengthen bilateral cultural and commercial ties, is of great interest given New Delhi’s diplomatic recognition of Beijing.
The dawn of a new era in Taiwan-India relations was on show during ROC President Ma Ying-jeou’s visit to the subcontinent prior to winning the nation’s top job in March 2008. Ma expressed a desire to develop economic ties between the two sides, with a view to combining Taiwan’s information communication technology expertise with Indian software know-how.
Taiwan has a growing interest in India’s software industry, with Taipei and New Delhi pursuing joint opportunities in the ICT industry. Such collaborative projects include building information technology industrial parks in India, promoting Indian participation in Taiwan’s special economic zones, developing IT products and R&D training.
Taipei and New Delhi have come a long way since initiating annual trade talks in 1992, followed by an exchange of trade offices in 1995 and signing the Investment Protection Agreement in 2002. According to the Federation of Indian Chambers of Commerce and Industry, Taiwan-India trade hit an all-time high of US$5.34 billion in 2008—an increase of 9.5 percent over the previous year.
Over the past eight years, Taiwan’s investment in India has reached US$1 billion and looks set to increase in the years ahead. Hsu Chun-fang, deputy director-general of the Bureau of Foreign Trade under the Ministry of Economic Affairs believes the bilateral relationship between Taiwan and India has improved significantly since 1990. “Both governments have launched efforts to significantly expand trade and investment in the fields of energy, electronics, IT and telecommunications,” he said.
In addition to economic exchanges, some in Taiwan perceive India’s democracy as the driving force behind its potential to emerge as a regional power center within Asia. This leads to the critical question of whether closer economic ties will ultimately make way for closer cooperation between Taipei and New Delhi.
India is uniquely placed to play a significant role in the Asia-Pacific region through its growing economic, political and strategic influence. As new global strategic considerations emerge, New Delhi is expected to bolster its position in the region by strengthening bilateral relationships and promoting cooperation across a broad range of areas.
This confirms expectations that India will pay greater attention to the region in the near and long-term future. Evolving Taiwan-India ties could well prove to be a key angle in the emerging Asian strategic setting.
Current progress in Taipei-New Delhi relations should be viewed optimistically, with stronger economic and cultural ties providing a platform for the expansion of this increasingly important bilateral relationship. Expectations can only climb higher as both sides continue to foster greater exchanges in the days ahead.
—Monika Chansoria is a senior fellow at the New Delhi-based Centre for Land Warfare Studies. These views are the author’s and not necessarily those of Taiwan Today. Copyright © 2010 by Monika Chansoria
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