India’s senior officials stated that India is looking to quickly sign a preferential trade agreement with Taiwan with a special focus on securing a steady supply of microprocessors, electronic components and precision tools. Apart from commitments to reduce import duties across key categories, the trade pact will include an investment chapter. This remains the government’s primary aim – to bring in more companies, capital and technical skills from the rich, manufacturing – driven economy.
The officials added that after having developed cold feet in 2020 under the strict opposition by China, India is now again keen to sign a deal with Taiwan by early next year. With a global chip shortage continuing, India has found more reason to sign the pact. India had earlier decided not to vigorously pursue investments from Taiwan because it did not want friction with China which considers the island its own and has refused to recognise the Taipei-based government over the past 70 years. However, the situation has changed and the trade talks with Taiwan are expected to move smoothly now.
