A recent report released by the Federation of Indian Chambers of Commerce and Industry or FICCI, titled Unlocking the Potential: The Benefits of India as a Partner for Taiwanese Enterprises, identifies five key manufacturing sectors poised to attract significant investments, potentially reaching up to USD 15 billion from Taiwan.
These sectors encompass a diverse range of products and technologies, including printed circuit boards (PCBs), a variety of electronic components such as passive devices and electro-mechanical components, semiconductors, electric motors, CCTV systems, and innovative smart healthcare devices like fitness trackers, smartwatches, and heart rate monitors.
Additionally, the report highlights the growing demand for electric vehicle (EV) charging infrastructure as an area ripe for investment. The current market for Taiwan in these sectors within India is valued at approximately USD 60 billion, providing a substantial opportunity for both domestic sales and international exports.
The report anticipates that market demand in these sectors will surge to USD 170 billion by the year 2030, underscoring a considerable prospect for Taiwanese enterprises to engage in profitable partnerships. The FICCI report emphasizes the mutual advantages of strengthening the relationship between Taiwan and India. It suggests that Taiwanese companies have the opportunity to capitalize on India’s rapid market growth while simultaneously sharing their advanced manufacturing expertise.
This collaboration is seen as a strategic alignment, as Taiwan brings its technological innovations to the table, while India offers an expanding consumer market, creating a win-win scenario for both nations. India’s policies promoting investment, including the India Semiconductor Mission (ISM) and the PLI scheme, along with enhancements in infrastructure and logistics, position the country as a compelling partner for Taiwanese businesses seeking to expand their global reach.
These initiatives not only make it easier for foreign investments but also create an ecosystem conducive to high-tech manufacturing. Furthermore, the report highlights Taiwan’s commitment to long-term sustainability and the importance of strategic partnerships.
Compared to other Southeast Asian nations, India presents a more favorable environment for such collaborations, making it an attractive destination for Taiwanese electronics firms. For these companies, India is a crucial component of their broader strategy to diversify their operations and strengthen their position across the manufacturing value chain.
FICCI’s analysis centers on the importance of bolstering economic ties between India and Taiwan, portraying India as an emerging economic landscape brimming with potential for Taiwanese businesses aiming for global expansion.
As the global economic landscape continues to change, the report outlines how India’s ongoing economic reforms, advancements in infrastructure, and digital transformation are establishing the country as a competitive destination for investments in crucial sectors like electronics manufacturing, green energy, electric vehicles, smart city development, and information and communication technology (ICT).
The report presents a roadmap for economic collaboration, focused on building resilient supply chains, advancing cutting-edge technologies, and addressing broader economic challenges. FICCI remains dedicated to supporting and promoting business relations between India and Taiwan through various initiatives, enhancing opportunities for investment and collaboration across multiple industries.
