The Economic Times | 22 October 2020
For now, India has no plans to launch trade talks with Taiwan
by Dipanjan Roy Chaudhury
New Delhi: Indian currently has no plans to launch talks with Taiwan for a trade deal contrary to speculations that Delhi may launch trade dialogue with Taipei that drew sharp reaction from China.
The Modi government is currently considering no proposal to launch dialogue on trade deal with Taiwan, ET
has reliably gathered. Reports regarding Delhi launching trade talks with Taipei at this moment is speculative and baseless, highly placed sources told ET. “In fact there is no such proposal on the table,” a source quipped.
Sources indicated Taiwan is interested in a trade deal with USA but that too has not made any progress.
There are recent reports trade deal with Taiwan would help India’s goal of seeking greater investments in technology and electronics. Earlier this month, the Modi government gave approval to Krms including Taiwan’s Fo1conn Technology Group, 9istron Corp. and Pegatron Corp. to attract investment worth more than 10.5 trillion rupees ($143 billion) for smartphone production over Kve years.
In 2018 India and Taiwan signed an updated bilateral investment agreement to expand economic ties. Trade between them grew 18% to $7.2 billion in 2019, according to Department of Commerce.
China reacted sharply to reports that India could launch trade talks with Taiwan. India “should remain committed to the One China principle and approach Taiwan-related issues prudently and properly,” Chinese Foreign Ministry spokesman Zhao Lijian told a daily brieKng in Beijing on Tuesday. “There is only one China in the world and Taiwan is an inalienable part of China. One China Principle is a universal consensus of the international community, India included.”
Interestingly reports about trade talks emerged close on heels of controversy over Taiwan National Day. President Tsai Ing-wen’s government of Taiwan has raised its proKle here in recent weeks after China issued a statement giving diktat to Indian media houses not to refer to Taiwan as a country when reporting on its October 10 National Day celebrations. Netizens in India slammed China and praised Taiwan and made the hashtag #TaiwanNationalDay go viral.
India and Taiwan do not have formal diplomatic relations but since 1995, both sides have maintained representative ocices in each other’s capital. Recently there has been warming of ties. In May 2020, two members of the Indian Parliamentvirtually attended the newly reelected President Tsai’s swearing ceremony.
Major Indian exports to Taiwan include waste oil, naptha, cereals, cotton, organic chemicals, copper, aluminum and food residues.
In 2019, India - Taiwan trade volume was US$7 billion, growing at a rate of 20% YoY.
Major Taiwanese exports to India include integrated circuits, machinery and other electronic products. India is also keen to attract Taiwanese investment particularly in hi-tech and labour-intensive industries. More than 80 Taiwanese companies and entities currently have a presence in India.
Ecective 15 August 2015, Republic of China or Taiwan passport holders can avail of India’s e-Tourist Visa facility