Authors:Tridivesh Singh Maini & Sandeep Sachdeva
On December 14, 2017 a pact was signed between Tien Chung-kwang, representative of Taipei Economic and Cultural Center (TECC) in India, and Sridharan Madhusudhanan, director of India-Taipei Association. Through this pact, the two countries will institutionalize cooperation in such areas as design and engineering, product manufacturing, R&D and after-sales service.
In the aftermath of economic liberalization, economic ties between both countries have witnessed a significant rise. Both sides established unofficial relations, by the setting up of the India-Taipei Association, as well as representative offices in 1995.
A strong reiteration of strong bilateral economic ties is the fact that in 2001 bilateral trade between both countries was estimated at 1.19 billion USD. In 2016,bilateral trade between both countries went up nearly 5 times and was estimated at 5 billion US dollars. In the first 9 months of 2017 itself, trade between both countries was estimated at nearly 5 Billion USD (4.7 billion).
There are over a 100 Taiwanese companies in India, with an investment of over 1.5 Billion USD. Taiwanese investments in India are in a number of areas includingauto components and parts, chemicals, engineering, financial services,, information and communication technology. Foxconn the worlds largest contract manufacturer for electronics has responded to the ‘Make in India’ scheme, and has already committed nearly 5 Billion USD in investments. It already has a presence in Andhra Pradesh, and is expanding to other parts of the country including Maharashtra.
It would be pertinent to point out, that along with India’s thrust on South East Asia and East Asia, and schemes like Make in India, it is Taiwan’s South bound policy which focuses on 10 ASEAN countries, 6 South Asian countries and Australia and New Zealand which has helped in accelerating economic ties between India and Taiwan in trade and investment. Both sides have also signed agreements in areas like agriculture and aviation services.
Soft Power and South Bound Policy
The South bound policy has achieved success not just in the context of investment and trade, but also in attracting tourism as well as students. One of the key components of the South Bound Policy put forward by President Tsai Ing Wen is the effective utilization of ‘Soft Power’. For instance in 2017,tourist arrivals in Taiwan rose by over 25 percent. Similarly in terms of student arrivals, there were over 30,000 student arrivals in 2017, a nearly 10% jump from 2016. In both these areas, Taiwan and India can deepen links. Taiwan has the potential not just to attract more students and professionals, but also Indian tourists. For giving a strong thrust to bilateral ties between both countries, the participation of Indian state governments could be an effective tool. Apart from states like Andhra Pradesh, Karnataka and Maharashtra states in Eastern India like Odisha, West Bengal and Bihar too should strengthen ties with Taiwan.
India-Taiwan: Strategic Sphere
It is also time, that both countries found common ground in the strategic sphere. There is a possibility of finding synergy between Taiwan’s South Bound Policy and India’s Act East Policy. Taiwan has already shown immense interest in the Indo-Pacific. While speaking at an International Seminar to outline his vision for the Indo-Pacific, Vice President Chen Chien-jen said:
“We are looking forward to increasing cooperation and trade and to strengthening ties with the Indo-Pacific region by mapping out a regional role for Taiwan through the New Southbound Policy,”
In finding synergies, it is important for India not to be reactive, and only look at these strategic links from the China prism. At the same time, Beijing can not dictate how New Delhi deals with Taipei given the fact that China has been turning a blind eye to terrorism emanating from Pakistan. In recent times, India has taken some interesting decisions which were carefully watched by China. In 2012, India allowed a layover to Taiwan then President Ma Ying-jeou in Mumbai, while in April 2014, it allowed a lay over to then Taiwan vice-president Wu Den-yih a layover at a Delhi airport en route to Rome. In February 2017, a delegation (the first under the Tsai Ing Wen government) of 3 women Members of Parliament from Taiwan visited India much to China’s chagrin. The head of the delegation, Kuan Bin ling said that Taiwan is totally independent, and that:
It (the One-China policy) is a de facto reality…We suffered a lot because of the One-China policy. We have crafted a pragmatic approach in our diplomatic engagement with major countries, including India, despite these difficulties,”
The Chinese media reacted to this visit, with an article in the Global Times, ‘New Delhi will suffer losses if it plays Taiwan card’ stating that,
‘By challenging China over the Taiwan question, India is playing with fire’. The article also stated that India was trying to use ties with Taiwan as a ‘bargaining chips’ over issues like the ‘South China Sea and Dalai Lama’
Reacting to the recent pact signed on December 2017, too a story in the Global Times, ‘India cozies up to Taiwan in foolish move’, commenting on the December 14thpact criticised the move saying that it will hurt India-China ties. What China forgets is that there are clear synergies between India and Taiwan, and that every country has the right to pursue an independent policy.
Conclusion
The India-Taiwan bilateral relationship needs to look not just at increased economic and people to people engagement through participation of stakeholders such as the business community, academics, participation of state governments and civil society. In the broader context of the Indo-Pacific too, both sides should find common ground and there is a possibility of finding synergy between India’s Act East Policy and Taiwan’s south bound policy. While in the economic sphere, some impressive strides have been made between both sides, it is imperative to also strengthen political and strategic engagement. As a responsible global player, India should certainly not provoke China but it’s approach towards the Indo-Pacific can not be dictated by Beijing.
