India Taiwan Trade Agreement

India and Taiwan are two rapidly developing economies that have been engaging in significant trade cooperation in recent years. The two nations have been working towards a free trade agreement (FTA) since 2010 to improve their economic ties, and the negotiations are still in progress.

The potential agreement would provide significant benefits for both countries by facilitating trade and investment, reducing barriers in merchandise trade, and improving market access for businesses. A trade agreement between India and Taiwan would offer a range of opportunities in agriculture, electronics, chemicals, and other sectors.

India has a large and growing market that provides an excellent opportunity for Taiwanese companies to expand their exports. The agreement would enable Taiwanese businesses to access India`s vast market with a population of over 1.3 billion, providing a tremendous opportunity for them to increase their market share.

On the other hand, the proposed agreement would also allow the Indian Government to attract Taiwanese investments and technologies into the country. It will encourage the Taiwanese companies to invest in India`s manufacturing and service sector, which will generate employment opportunities and boost the economy.

India and Taiwan are also keen on cooperating in the high-tech sector, which would improve their technological capabilities and enhance their competitiveness. The Indian government has already taken several steps to create an environment that is conducive to Taiwanese investment, including establishing special economic zones and offering tax incentives for foreign investors.

However, there are significant challenges in the way of reaching an FTA. One of the main stumbling blocks is China`s opposition to any formal trade agreement between India and Taiwan. Beijing sees Taiwan as a breakaway province that should be reunited with the mainland and has been putting pressure on countries not to recognize or have any official ties with Taipei.

Moreover, India is also concerned about the possible backlash from China, and it must balance the growing relationship with Taiwan with its key strategic partnership with China. The delay in concluding the FTA is primarily due to India`s cautious approach towards the issue.

In conclusion, India and Taiwan share a long-standing history of friendship and can significantly benefit from greater trade and economic cooperation. The proposed trade agreement must overcome the contentious issue of China`s opposition and be concluded to take advantage of the growing economic opportunities that exist between the two countries. An India-Taiwan FTA could significantly boost economic growth, create jobs, and enhance economic competitiveness for both nations.