TAIPEI: Taiwan’s six-year-old New Southbound Policy (NSP), coupled with the world’s China-plus policy, has been working to India’s advantage as new industrial and manufacturing institutions are being moved away from China, says Kao, Shien-Quey, Taiwan’s deputy minister, National Development Council.
“We are diversifying production bases to other like-minded countries such as India and those in Central Europe and the United States,” she said.
“Many semi-conductor industries in Taiwan, including Foxconn and Mediatech, have made bases in India. India’s strength in software and Taiwan’s expertise in hardware would be complementary to each other,” she said, adding that India’s big market is an incentive for investments.
Data furnished by the Taiwan ASEAN Studies Centre (TASC) to a group of foreign media correspondents on a visit to Taiwan supported the minister’s statement.
China alone accounted for about 80% of Taiwan’s annual outbound FDI in the year 2010. In 2022, it was down to 33.6%. It is only 10.8% so far this year.
The ASEAN countries are benefiting the most from this shift in Taiwan’s outbound FDI.
“Investment climate in China is becoming less and less favourable,” said Kristy Hsu, director, TASC. Around 40% of Taiwan’s new investment is going to South Asian nations like Vietnam, and another 30% is going to the US.
As for India, she said Taiwan’s trade volume with India is very minimum, around 1% of the total value. Asked about the reasons, she said there were some “problem areas.”
“Different states in India have different laws and rules, and the government of India has restricted working visas. It is difficult to establish supply chain in India and many components need to be sourced from other countries. There are also labour issues,” Hsu said.
Nevertheless, in addition to existing pockets in India, two big industrial clusters are being developed — one in Greater Noida and another in Bengaluru, she said.
A non-leather sports shoes facility coming up near Chennai would attract nearly US$1.2 billion as investment, Hsu added.
Calling the precision health tools industry as the next semi-conductor-type game-changer, deputy minister Kao said Taiwanese industries are looking for global collaboration. “We are looking forward to collaborations with India and hospitals in India,” she added.
Taiwan is not without its cup of woes. Two things stood out. One, the deputy minister said Taiwan now imported 90% of its energy, but added, “Our goal is to reduce it and also achieve net zero emissions by 2050.”
She said renewable sources like offshore wind energy plants and solar power could help Taiwan reach the net zero commitment and self-sufficiency.
Two, from robust 6.5% growth in 2021, the GDP crashed to 2.5% in 2022 due to ‘global issues’.
This year the original forecast was more than 3%, but it might end up at 2.1%, said TASC Director Hsu.
Interest among Indian students for technological courses and industrial training is increasing, said Hsu, adding that more than 2,000 students showed interest during a recent talent matchmaking event.
Taiwan has tie-ups with some Indian universities. Over 2,000 students join Taiwanese institutions, and India is fifth in terms of the number of international students doing courses in Taiwan. Vietnam occupies the top spot, she said.
Kao said many institutions adopted industry-academia collaboration model for international students doing semiconductor-related courses.
“Right now, one lakh international students are in Taiwan and we plan to double the number in the next five years,” she said.
(This correspondent is on a visit to Taiwan at the invitation of ministry of foreign affairs, Republic of China (Taiwan), as a part of international press group).
“We are diversifying production bases to other like-minded countries such as India and those in Central Europe and the United States,” she said.
“Many semi-conductor industries in Taiwan, including Foxconn and Mediatech, have made bases in India. India’s strength in software and Taiwan’s expertise in hardware would be complementary to each other,” she said, adding that India’s big market is an incentive for investments.
Data furnished by the Taiwan ASEAN Studies Centre (TASC) to a group of foreign media correspondents on a visit to Taiwan supported the minister’s statement.
China alone accounted for about 80% of Taiwan’s annual outbound FDI in the year 2010. In 2022, it was down to 33.6%. It is only 10.8% so far this year.
The ASEAN countries are benefiting the most from this shift in Taiwan’s outbound FDI.
“Investment climate in China is becoming less and less favourable,” said Kristy Hsu, director, TASC. Around 40% of Taiwan’s new investment is going to South Asian nations like Vietnam, and another 30% is going to the US.
As for India, she said Taiwan’s trade volume with India is very minimum, around 1% of the total value. Asked about the reasons, she said there were some “problem areas.”
“Different states in India have different laws and rules, and the government of India has restricted working visas. It is difficult to establish supply chain in India and many components need to be sourced from other countries. There are also labour issues,” Hsu said.
Nevertheless, in addition to existing pockets in India, two big industrial clusters are being developed — one in Greater Noida and another in Bengaluru, she said.
A non-leather sports shoes facility coming up near Chennai would attract nearly US$1.2 billion as investment, Hsu added.
Calling the precision health tools industry as the next semi-conductor-type game-changer, deputy minister Kao said Taiwanese industries are looking for global collaboration. “We are looking forward to collaborations with India and hospitals in India,” she added.
Taiwan is not without its cup of woes. Two things stood out. One, the deputy minister said Taiwan now imported 90% of its energy, but added, “Our goal is to reduce it and also achieve net zero emissions by 2050.”
She said renewable sources like offshore wind energy plants and solar power could help Taiwan reach the net zero commitment and self-sufficiency.
Two, from robust 6.5% growth in 2021, the GDP crashed to 2.5% in 2022 due to ‘global issues’.
This year the original forecast was more than 3%, but it might end up at 2.1%, said TASC Director Hsu.
Interest among Indian students for technological courses and industrial training is increasing, said Hsu, adding that more than 2,000 students showed interest during a recent talent matchmaking event.
Taiwan has tie-ups with some Indian universities. Over 2,000 students join Taiwanese institutions, and India is fifth in terms of the number of international students doing courses in Taiwan. Vietnam occupies the top spot, she said.
Kao said many institutions adopted industry-academia collaboration model for international students doing semiconductor-related courses.
“Right now, one lakh international students are in Taiwan and we plan to double the number in the next five years,” she said.
(This correspondent is on a visit to Taiwan at the invitation of ministry of foreign affairs, Republic of China (Taiwan), as a part of international press group).