It has become increasingly evident to much of the Indian strategic community that despite rhetoric, China does not share India’s desire for friendship and cooperation. Since 2007, China has consistently asserted an aggressive posture in its longstanding border dispute with India. This trend began with intrusions into Ladakh in Indian-administered Jammu and Kashmir (J&K) in 2013 and 2014, spiked with the Doklam/Dolam standoff in 2017, and rose to global attention in 2020 when Indian and Chinese troops clashed for the first time in decades. The pressure on India’s borders has not lifted despite multiple high-level attempts at a “reset” in India-China relations. The relationship also soured with the announcement of the China-Pakistan Economic Corridor (CPEC) as part of the Belt and Road Initiative (BRI). Since CPEC is intended to run through portions of Pakistan-administered Kashmir, India opposes it as a violation of its sovereignty.
New Delhi’s recognition of the current inflection point in India-China relations has led to increasing alignment with Taipei. Their converging threat perceptions of China have sparked collaborative India-Taiwan efforts to advance their mutual geoeconomic interests in the Indo-Pacific region. Their emerging partnership aims to offer alternative supply chains and strategic options to regional countries, effectively countering China’s expansionist approach.
Accelerating the India-Taiwan Partnership
Although India continues to adhere to a One China Policy and lacks formal diplomatic relations with Taiwan, New Delhi has actively sought to strengthen its ties with Taiwan in recent years, albeit episodically. China’s growing influence in South Asia and the Indian Ocean has challenged India’s position in the region, leading India to upgrade its Look East policy to an Act East policy to counter China’s expansionist aims. At the same time, to shed its dependency on China, Taiwan has formulated the New Southbound Policy focusing more on Southeast Asia and India for partnerships. These simultaneous shifts have brought new vibrancy to India-Taiwan relations while provoking strong reactions from Beijing.
New Delhi’s recognition of the current inflection point in India-China relations has led to increasing alignment with Taipei. Their converging threat perceptions of China have sparked collaborative India-Taiwan efforts to advance their mutual geoeconomic interests in the Indo-Pacific region.
India’s growing diplomatic and economic engagement with Taiwan is reflected in several key actions, signaling a shift in its foreign policy approach. Following Prime Minister Narendra Modi’s June 2024 re-election, Taiwan’s President Lai Ching-te congratulated him and Modi responded by explicitly stating he looks forward to “closer” economic and technological ties with Taipei. Additionally, on India’s 75th Republic Day, it awarded a Padma Bhushan, an award typically given to Indian citizens for distinguished service of high order, to Young Liu, the chief executive officer and chairman of the Taiwanese technology giant Hon Hai Technology Group (Foxconn). As a part of expanding bilateral relations, in October 2024, the Taipei Economic and Cultural Center in Mumbai was also formally inaugurated. This center is the third of its kind in India, following ones in New Delhi and Chennai, and has been granted permission to operate as a de facto consulate by the Ministry of External Affairs (MEA). There are also clear signs that the Indian government is allocating greater diplomatic capital to Taiwan—the MEA shifted its language training for diplomats from Beijing to Taipei several years ago.
The economic and business relationship between India and Taiwan is also rapidly growing. In 2024, bilateral trade reached a record high of USD $10.6 billion. Compared to 2023’s trade value of USD $8.224 billion, which was 2.78 percent lower than 2022, the 2024 figures demonstrated not just a recovery but significant growth in economic engagement between the two nations. As of the end of February 2024, approximately 200 Taiwanese businesses have made investments in Indian electronics, information and communication technology, and petrochemicals businesses, among others. With respect to the business and technological sectors, in 2024, Tata Electronics concluded an agreement with Taiwan-based Powerchip Semiconductor Manufacturing Corporation (PSMC). As per the agreement, PSMC will provide licenses to a broad portfolio of technologies as well as design, engineering, and construction support to build India’s first artificial intelligence-enabled greenfield manufacturing facility in Gujarat. The Gujarat plant will, in turn, help India in its semiconductor mission launched in 2021.
The gradual expansion of India-Taiwan relations has seen several landmark agreements. Firstly, a Memorandum of Understanding (MoU) on scientific and technological cooperation was signed between TECC and the India-Taipei Association (ITA) in 2007. This MoU enabled collaboration in fields ranging from agricultural and food science to disaster management to pharmaceuticals as well as bilateral joint meetings and academic seminars that are held annually. As of January 2024, 130 projects and joint proposals have been carried out while 27 seminars have been held bilaterally. Secondly, India and Taiwan signed a Bilateral Investment Agreement in 2002 that went into effect in 2005, aimed at increasing foreign direct investment for Taiwanese firms. This agreement was further updated in 2018 to include indirect investments by Taiwanese firms through third countries. Finally, in February 2024, India and Taiwan signed a MoU on labor cooperation, enabling Indian workers to support Taiwan’s economy amid its aging population.
In sum, India and Taiwan have increasingly leveraged their shared strategic interests vis-à-vis China to strengthen their economic, labor, and political relations. Furthermore, given recent geopolitical trends in the Indo-Pacific, the convergence of Indian and Taiwanese interest is likely to only grow in the coming years and be an area of great opportunity for both nations.
Next Steps in the Relationship
One promising opportunity for future collaboration between both countries lies in language learning. In India, there is currently a vacuum of Mandarin language learning resources, with New Delhi limiting clearances for China’s Confucius Institutes due to security concerns. Taiwan has an opportunity to fill this gap, as, unlike Confucius Institutes, which control curricula and faculty appointments, Taiwanese instructors could provide independent, unbiased language training. This partnership would provide India with avenues for skill development and genuine cross-cultural understanding, while posing no security risks. On the other hand, Taiwan could also tap into India’s multilingual talent pool with strong English proficiency to support its goal of becoming a bilingual nation by 2030. Recruiting Indian professionals to teach English would not only provide employment opportunities to Indians but also increase Taiwan’s visibility in India’s job market, fostering deeper economic and cultural ties.
Another area where India and Taiwan can deepen ties is in AI. The Indo-Taiwan Joint Research Centre on Artificial Intelligence and Machine Learning, established in 2019 with support from Taiwan’s Ministry of Science and Technology, facilitates academic and industry partnerships to promote research in AI and machine learning across India and Taiwan. Expanding this initiative would align with India’s Viksit Bharat plan, which aims to make India a fully developed nation by 2047, while leveraging Taiwan’s expertise in AI.
The next phase of India-Taiwan relations could also focus on strengthening geoeconomic ties, particularly in science and technology. A key priority for India is building resilient high-tech supply chains to reduce dependence on any single country. This approach will help both nations navigate geopolitical disruptions while advancing their strategic and economic interests.
Challenges to Sustainable Growth
The counterweight to the growing India-Taiwan relationship is some concern that this New Delhi-Taipei convergence is merely the result of geopolitical tensions with China. While Taiwan has long viewed India as a promising opportunity for economic growth and a strategic partner in Asia—particularly since the first Democratic Progressive Party administration from 2000 to 2008—India’s foreign policy remained measured. In the 1990s, Prime Minister P.V. Narasimha Rao’s statements to the first Director General of the ITA acknowledged the importance of economic relations with Taiwan as part of his Look East Policy, but he was also fully aware that maintaining good relations with China was a top priority. There are some voices in New Delhi that still view Taiwan as a potential liability in India-China relations. However, the downturn in India-China relations has shifted this historic calculus and created a conducive environment for India-Taiwan convergence.
While strong economic, social, and cultural interactions are necessary for the sustainability of the relationship, India and Taiwan cannot afford to wait for these areas to flourish on their own. Instead, progress will require directives from the highest levels as well as grassroot initiatives.
To be sure, the Taiwan-India relationship has been on this growth trajectory for years and has been driven by high-level policies and diplomatic initiatives by both sides—first from New Delhi in 1991 and later from Taipei between 2002 and 2008. These initiatives occurred before any significant economic collaboration took place. However, while these high-level policies are important in supporting interactions on the ground, a more grassroots, bottom-up approach could lead to a more sustainable Taiwan-India convergence. Taipei and New Delhi should prioritize building relationships through people-to-people connections rather than solely focusing on security issues. It is vital to facilitate relationships between individuals in various sectors in India and Taiwan, including media, politics, academia, and among students, as both sides have a lot to gain from each other and doing so can help enhance ties between the two.
While strong economic, social, and cultural interactions are necessary for the sustainability of the relationship, India and Taiwan cannot afford to wait for these areas to flourish on their own. Instead, progress will require directives from the highest levels as well as grassroot initiatives. While the India-Taiwan relationship has gained sustainable footing under the Modi and Tsai regimes, its future will depend on a continuation of collaboration and connection between all levels of society in both countries.
Also Read: An Incipient Reset: India-China Economic Cooperation in the Trump Era
Views expressed are the author’s own and do not necessarily reflect the positions of South Asian Voices, the Stimson Center, or our supporters.
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Image 1: Taiwan in India via X
Image 2: Via Tata Electronics
Views expressed are the author’s own and do not necessarily reflect the positions of South Asian Voices, the Stimson Center, or our supporters.
