Tensions between China and Taiwan may help India attract business investment from the island nation, a senior official said on Wednesday.
However, the official complained that the current import duties levied by India are very high and need to be reduced, and pleaded for a free trade agreement between the two countries to help on this aspect.
Taiwanese companies that have manufacturing bases in China are considering diversifying their bases to countries like Vietnam, Malaysia, the Philippines and also India due to geopolitical issues, said Estela Chen, executive director of the economic division. of the Economic and Cultural Center of Taipei. PTI.
“Many Taiwanese companies are looking for another base outside of China. They can maintain their base in China, but they still have to look for others to back them up,” she said.
It can be noted that over the past few months, ties between China and Taiwan, the relatively small island nation in the nearby Pacific Ocean, have soured with acts of war and commentary from both sides. .
Speaking days after a controversy sparked by Taiwanese firm Foxconn’s decision to have a $19 billion project in Gujarat, Chen said the decision was the “individual decision” of the joint venture in which the local company Vedanta is also a partner.
She said Maharashtra has a host of advantages such as port connectivity and will continue to attract investment.
The presence of semiconductor and manufacturing manufacturing in an area will cause the entire industry supply chain to shift to a particular area, she said.
The official in charge of developing Indo-Taiwanese trade said the current import duty stood at 30 percent and stressed the need for an FTA. The same topic was raised with Indian officials, she said.
In 2021, bilateral trade between the two countries stood at $7.7 billion and was balanced in favor of Taiwan, she said.
The partnership between the two countries is one of the complementarities, where Taiwan can get the hardware and India has its strengths in the software, she said.