Balasubramanian C[1]
As Indian Prime Minister Narendra Modi entered office for the third time, global powers including the US and Russia congratulated him on securing another term. Taiwan also extended congratulations, expressing eagerness to strengthen their “fast-growing” ties with India. PM Modi responded positively, anticipating closer relations between the two nations.[2]
Concerned by these exchanges, China restated its stance that Taiwan is an “inalienable part” of its territory. During a media briefing in Beijing, Chinese foreign ministry spokesperson Mao Ning emphasized that China had protested to India regarding the messages exchanged between Modi and Taiwan’s Vice President Lai Ching-te.[3] The Chinese Embassy in India underscored the principle of “one China,” stressing that Taiwan is an integral part of it. China urged India to acknowledge and resist any political maneuvers by Taiwan authorities related to the one-China policy. Mao Ning also dismissed the title of President for Taiwan, stating categorically, “there is no such thing as 'President' of the Taiwan region.”[4]
The article explores the growing ties between India and Taiwan, which have significantly strengthened in recent years. In February 2024, the countries signed a migration and mobility agreement aimed at enhancing bilateral labor cooperation, allowing Indian workers to be employed in Taiwanese industry.[5] In another noteworthy development in 2023, Taiwan established the Taipei Economic and Cultural Center in Mumbai, marking its third such center in India.[6] The first center was established in New Delhi in 1995, followed by the second in Chennai in 2012. These moves are seen as Taiwan’s efforts to deepen its relations with India, especially as India’s relations with the People’s Republic of China (PRC) are at an all-time low.
Over the years, Taiwan and India have made significant progress across various domains, including trade, technology, culture, and education. These efforts are integral to Taiwan's “New Southbound Policy”, aimed at enhancing cooperation and exchanges with countries in Southeast Asia, South Asia, and the Pacific region. For India, this partnership has the potential to complement its Act East Policy and broader Indo-Pacific strategy. Within this framework, both New Delhi and Taipei maintain cordial relations with the US, Australia, and Japan. Apart from Taiwan, all are part of the QUAD framework alongside India.
As development partners, India and Taiwan have deepened mutual respect, with democracy and diversity serving as key principles for their collective growth. Both nations share similar values, including a commitment to freedom, human rights, justice, and the rule of law, which continue to strengthen their partnership. To further enhance trust at the political level, the India-Taiwan Parliamentary Friendship Forum was established in December 2016.[7]
India mediated between the PRC and the US during the Formosa Crisis of 1958, hence, India’s role in the Indo-Pacific assumes great importance in the regional security landscape. Taiwan and India share a vision of a free, open, and inclusive Indo-Pacific region. About 55 percent of India’s trade passes through the South China Sea, specifically through the Taiwan Strait.[8] This economic dimension increases India’s stakes in the peace and stability of the Sea Lanes of Communication (SLOCs) and the security of its trade in the South China Sea. According to noted foreign policy analyst C. Raja Mohan, “the unfolding dynamic around Taiwan will have significant consequences for India’s Act East Policy and its emerging role in the Indo-Pacific region”.[9] It is also worth noting that Taiwan’s role in the emerging Indo-Pacific order has been under-appreciated and yet to be tapped to its fullest potential.[10] Ties can further benefit from collaboration in areas of trade, research, and defence. The emerging convergence of security interests can be encouraged through interactions between the strategic communities on both sides. Immediate avenues for cooperation may include maritime security, including maritime domain awareness, joint exercises on counter-terrorism, sharing best practices in disaster management and resilience-building, institutional arrangements for combating misinformation and disinformation in cyber and other domains, and cooperation in the domain of cybersecurity.
Taiwan has officially started focusing on South Asian countries such as Bangladesh, Bhutan, Nepal, and Sri Lanka.[11] India can facilitate Taiwan’s efforts to deepen its engagement in the region. The ongoing tensions between the US and China is compelling Taiwan to accelerate its plans to move its large manufacturing bases away from China to Southeast Asia and India. For India to promote and scale-up its industrial production and create jobs, the Taipei connection with its impressive small and medium enterprises is more than opportune. Learning of best practices from Taiwan in high-end manufacturing in the Micro, Small & Medium Enterprises (MSME) sector is a step in the right direction for India.[12]
Taiwan’s reputation as a world leader in semiconductors complements India’s aspirations to become a leader in the semiconductor ecosystem. Taiwan's expertise in R&D and entrepreneurship can complement India's talent pool and digital economy, fostering collaboration in strategic and emerging technologies. Taiwan produces over 60% of the world's semiconductors and over 90% of the most advanced ones.[13] This is a solid foundation for collaborations between universities, research institutions, think tanks, and technology enclaves in both countries. In return, Taiwan can benefit from India's leadership in Information Technology-Enabled Services (ITES). This convergence can create new opportunities for both countries.
Obstacles to Taiwan’s greenfield investments in India need to be addressed as a priority. Improving the “Ease of Doing Business” in India will attract Taiwanese businesses to shift their ties from China to India. Beyond semiconductors, Taiwan’s agro-technology, organic farming, and food processing technology can greatly benefit India’s agriculture sector by helping Indian farmers double their income, thereby improving their living conditions and contributing to India’s growth.
For Taiwanese companies in electronics, automotive engineering, and green technologies, India offers a large market and opportunities for expansion. This complements New Delhi’s ‘Make in India’ initiative. Taiwan has long been acknowledged as a world leader in electronics and high-tech equipment manufacturing, and thus can significantly contribute to the vision of “Digital India.”
With a declining birth rate and rapidly growing emigration, Taiwan’s industry, education, and technology sectors can benefit from India’s skilled workforce, such as engineers and scientists. The signing of the MoU on migration and mobility, which strengthens bilateral labour cooperation, can be seen in this light.
India, in 2021, donated 1.5 million rupees (NT$570,000) to Taiwan’s National Research Institute of Chinese Medicine (NRICM) to boost cooperation in the area of traditional medicine.[14] India has also set up a permanent “AYUSH Information Cell,” providing data about traditional Indian medicine and managing exchanges with the Chinese medicine community in Taiwan. The time is ripe to expand cooperation in the field of healthcare. To advance this, both sides can consider pooling their respective strengths in medicine and launching health security initiatives in the Indo-Pacific region. This has become imperative, especially in the post-COVID era, for mitigating future health emergencies.
As a new form of soft power diplomacy, Taiwan can strengthen cultural and people-to-people ties with India by leveraging its “Tea Culture.” In 2018, India hosted in India.[15] Since 2004, Taiwan has been offering the ‘Taiwan Scholarship’ and the ‘National Huayu Enrichment Scholarship’ (HES) to Indian students to study in Taiwan. This initiative can be enhanced to tap the potential of ‘Education Diplomacy.’
To accelerate the flow of Taiwanese tourists, connectivity in the “Buddhist Pilgrimage Circuit” can be strengthened, showcasing India’s incredible diversity. An India-Taiwan Buddhist Circuit, making Taiwan more accessible for Indians, can foster people-to-people ties and leverage ‘Travel Diplomacy.’
Buddhism is not only a powerful cultural force but also a geopolitical asset. To put into perspective India has given birth to four major religions – Hinduism, Buddhism, Sikhism and Jainism. With the shift from the Trans-Atlantic to Asia, the Indo-Pacific region has emerged as the geopolitical center of gravity today. Many major countries in the region are Buddhist nations, including Myanmar, Vietnam, Japan, South Korea, and nearly half of the ASEAN countries with whom India share a lot of cultural and civilizational connections. For instance,[16] in the second half of the second century BC, two Indian Buddhist monks, Mahajavaka and Kalyanacuri, are credited with founding Buddhism in Vietnam.
India’s rich Buddhist heritage offers a unique opportunity to create jobs and improve services for locals, while preserving sacred sites and catering to global Buddhists. Globally, tourism employment consists of 50 percent women and 50 percent youth (under 25), illustrating tourism's inclusive growth potential. Well-structured tourism can be labour-intensive, benefiting both skilled and unskilled workers. It promotes small-scale entrepreneurship, especially among poor women and youth, and funds infrastructure and hospitality services in areas often neglected by traditional development schemes. Usually, visitors to Buddhist sites in India from Taiwan seek more authentic experiences and are interested in Buddhist practices and religious values. They often avail themselves of high-priced group packages with value-added services, placing them in the upper tier of high-budget travellers.
The spread of Buddhism across Asia began with the Mauryan Emperor Ashoka (268-232 BCE), who structured his empire based on Buddhist precepts. He is reputed to have erected over 84,000 stupas, pillars, and rock edicts across his empire. These monuments and edicts are scattered across India, Nepal, Bangladesh, Afghanistan, Pakistan, and Sri Lanka, with around 20 pillars still standing. Emperor Ashoka’s legacy significantly contributed to the spread of Buddhism across Asia. Hence, India has a spiritual, moral, and cultural duty to revive the international role of Buddhism that Ashoka once established and there is, therefore, an urgent need to map, assess and explore ‘Buddhist Circuits’ as part of ‘Buddhist Diplomacy’ by India. Reliable, fast, safe, multimodal, and affordable connectivity between the sites of the Buddhist Circuit, as well as between the Buddhist Circuit and its main source markets, is critical for its sustained and holistic development in the Indo-Pacific region. India must take the lead in enhancing this
initiative.
In conclusion, India’s foreign policy priorities, especially concerning New Delhi’s ‘Near Abroad’ under Modi 3.0, should include accommodating Taiwan and building upon the foundations established in previous years, nurturing this relationship further. In addition to military preparedness and aligning interests with key countries, India should include Taiwan in a central role in its long-term strategy concerning China.
[1]
Senior Research Analyst at the Centre for National Security Studies (CNSS), he is an ardent China watcher with numerous publications in both print and online platforms. He has delivered lectures and been invited to present at international and national conferences. His areas of specialization include China’s Foreign Policy, Maritime Security, the Indo-Pacific region, and developments within China.
[2]
News Desk, “PM Modi Responds To Taiwan President Lai’s Greetings On NDA Election Win, China Protests,” News 18, June 6, 2024, https://www.news18.com/world/taiwan-china-modi-congratulate-message-lok- sabha-elections-8922933.html.
[3]
“Foreign Ministry Spokesperson Mao Ning’s Regular Press Conference,” June 6, 2024, http://www.brisbane.china-consulate.gov.cn/eng/fyrth/202406/t20240606_11405886.htm.
[4]
“Foreign Ministry Spokesperson Mao Ning’s Regular Press Conference,” June 6, 2024, http://www.brisbane.china-consulate.gov.cn/eng/fyrth/202406/t20240606_11405886.htm.
[5]
“India, Taiwan sign migration agreement to strengthen bilateral cooperation,” Business Standard, February 16, 2024, https://www.business-standard.com/economy/news/india-taiwan-sign-migration-agreement-to-strengthen-bilateral-cooperation-124021601307_1.html.
[6]
Huma Siddiqui, “Taiwan to Establish Taipei Economic and Cultural Center in Mumbai, Strengthening Ties with India,” Financial Express, July 5, 2023, https://www.financialexpress.com/business/defence/taiwan-to-establish-taipei-economic-and-cultural-center-in-mumbai-strengthening-ties-with-india/3157250/.
[7]
Rudroneel Ghosh, “New Synergy: Parliamentary friendship forums can open a new chapter in India-Taiwan ties,” The Time of India, December 24, 2016, https://timesofindia.indiatimes.com/blogs/talkingturkey/new-synergy-parliamentary-friendship-forums-can-open-a-new-chapter-in-india-taiwan-ties/.
[8]
“Question No. †4832 Indian Trade Through the South China Sea” India Ministry of External Affairs, April 1, 2022, https://www.mea.gov.in/lok-sabha.htm?dtl/35118/question+no+4832+indian+trade+through+south+china+sea.
[9]
- Raja Mohan, “Raja Mandala: Modi’s Taiwan Opportunity,” Indian Express, May 28, 2019, https://carnegieendowment.org/posts/2019/05/raja-mandala-modis-taiwan-opportunity?lang=en¢er=india.
[10]
“Taiwan, India, and the Indo-Pacific Order: Current Trends and Future Possibilities,” ORF, August 19, 2021,https://www.orfonline.org/event/taiwan-india-indo-pacific-order-current-trends-future-possibilities.
[11]
Sumit Kumar, “South Asia Ties Need to Be Nurtured,” Taipei Times, June 26, 2022, https://www.taipeitimes.com/News/editorials/archives/2022/06/26/2003780566.
[12]
Srinivas Prasad, “Design Excellence to Manufacturing Powerhouse: Shortening India's Semiconductor Journey to Success,” The Economic Times, September 30, 2023, https://economictimes.indiatimes.com/small-biz/sme-sector/design-excellence-to-manufacturing-powerhouse-shortening-indias-semiconductor-journey-to-success/articleshow/104058239.cms?from=mdr.
[13]
“Taiwan’s Dominance of the Chip industry Makes It More Important,” The Economist, March 6, 2023, https://www.economist.com/special-report/2023/03/06/taiwans-dominance-of-the-chip-industry-makes-it-more-important.
[14]
Matthew Strong, “India Makes Donation to Taiwan to Boost Cooperation on Traditional Medicine,” Taiwan News, Feburary 26, 2021, https://www.taiwannews.com.tw/news/4137331.
[15]
IANS, “Taiwan Film Fest to Be Held in Delhi,” The Millennium Post, September 8, 2018, https://www.millenniumpost.in/delhi/taiwan-film-fest-to-be-held-in-delhi-317795.
[16]
Dipanjan Roy Chaudhury, “India-Vietnam Relations: Contextualizing the Indo-Pacific Region,” The Economic Times, June 11, 2021, https://economictimes.indiatimes.com/news/defence/india-vietnam-relations-contextualising-the-indo-pacific-region/articleshow/83427128.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst.