Mumbai is Taiwan’s next stop as its firms move far from China

While India does not have formal diplomatic ties with Taiwan yet as it adheres to the One-China policy, Taiwan has established Taipei Economic and Cultural Centres in India to conduct business here. In the absence of an embassy, they represent Taiwan’s interests in India, and while its office in Delhi functions as an embassy, the centre in Chennai operates as a consulate.

In an official statement on Wednesday, Taiwan’s Foreign ministry said that “in recent years, cooperation between the Republic of China (Taiwan) and the Republic of India has witnessed significant progress in numerous domains, including economics and trade, science and technology, critical supply  chains, culture, education, and traditional medicine”.

“In light of this development, the R.O.C. (Taiwan) government will establish the Taipei Economic and Cultural Center (TECC) in Mumbai in order to further deepen exchanges and cooperation between the two countries,” it said.

It said that since the TECC in Chennai was set up in 2012, nearly 60 per cent of all Taiwanese businesses investing and opening factories in India have chosen to develop their operations in southern India. Chennai and its surrounding areas have thus benefited from the investments made by Taiwanese manufacturing industries. The establishment of the TECC in Mumbai is expected to have a similar effect in western India, it said.

Explaining the rationale to open its office in Mumbai, it said, “India became the world’s fifth-largest economy in 2022, and becomes the most populous nation this year. With its enormous market and related business opportunities, India has emerged as a major investment destination for global enterprises. Mumbai is the largest city in India, serving as the country’s financial center and boasting its largest port. Many countries have established consulates in Mumbai, including the United States, Japan, the United Kingdom, and Australia.”

Taiwan-based Foxconn, which is Apple’s largest supplier, has an iPhone manufacturing facility in Tamil Nadu. The company is now setting up another iPhone production facility in Karnataka that is expected to start production by April next year.

Taiwan produces close to 70 per cent of the world’s semiconductors and over 90 per cent of the most advanced chips that are required for almost all electronic equipment such as smartphones, car components, data centres, fighter jets and AI technologies.

The Taiwan Foreign Ministry statement said that the TECC in Mumbai will help expand mutually beneficial trade and investment opportunities between Taiwan and India. “Furthermore, the TECC in Mumbai will provide visa services, document authentication, and emergency assistance to businesspeople, tourists, and Taiwanese nationals in the states of Maharashtra, Goa, Gujarat, and Madhya Pradesh, as well as the union territory of Dadra and Nagar Haveli and Daman and Diu,” it said.

“Under Taiwan’s New Southbound Policy, it will also promote exchanges and cooperation in science and technology, education, culture, and people-to-people ties between Taiwan and western India,” it said.

While India follows the One-China policy, it has an office in Taipei to carry out diplomatic functions. It operates under the name of India-Taipei Association, which is headed by a senior Indian diplomat.

The India-Taipei Association (ITA) in Taiwan and Taipei Economic and Cultural Center (TECC) in New Delhi were established as de-facto Indian and Taiwanese embassies in each other’s capitals in 1995.

Both sides have maintained the focus of ties on commerce, culture and education. The profile of the ties, now in their third decade, has been deliberately kept low, owing to the sensitivities of China.

The bilateral trade between India and Taiwan is on an upswing. The volume of trade increased from USD 2 billion in 2006 to USD 8.9 billion in 2021.