In recent years, India and Taiwan relations have been witnessing a warmth. This shift has been marked by increased cooperation across various sectors, and it’s causing ripples in the strategic landscape of Asia. Traditionally, India adhered to a “One China” policy, acknowledging Beijing’s claim over Taiwan. However, several factors are now pushing New Delhi to recalibrate its approach.
Why the Change?
There are a few key reasons behind India’s growing engagement with Taiwan. One significant factor is the ongoing border dispute between India and China. The two Asian giants have clashed over Himalayan territory, raising concerns in New Delhi about China’s aggressive military posture. Taiwan, on the other hand, faces constant pressure from China regarding its sovereignty. India sees a strategic convergence with Taiwan in their shared desire to counter China’s influence.
India and Taiwan relations: Economic ties
India and Taiwan relations have been enhanced lately by their commercial ties. In a significant milestone, the bilateral trade volume between the two countries surpassed USD $10 billion for the first time in their history.
India and Taiwan have intensified discussions regarding the establishment of a semiconductor manufacturing hub in India. This initiative aims to enhance India’s capabilities in semiconductor production and reduce dependence on imports. Taiwan, being a global leader in semiconductor technology, can play a crucial role in supporting India’s ambitious goals in this sector.
India and Taiwan have also signed several bilateral agreements to enhance economic collaboration. These agreements cover areas such as agriculture, civil aviation, investments, customs cooperation etc.
India and Taiwan relations: Beyond economy
India used to avoid taking sides on Taiwan, but now it recognizes Taiwan as a democracy. This shift is shown by a recent agreement between India and Taiwan that makes it easier for people to move between the two countries.
India and Taiwan are also strengthening cultural and people-to-people ties. Student exchange programs are flourishing, and cultural events are fostering a sense of mutual understanding. A recent development was the signing of a labor pact, allowing Indian blue-collar workers to find employment opportunities in Taiwan. This will not only benefit the Indian workforce but also potentially lead to a larger Indian community in Taiwan, further solidifying the connection.
A controversy also erupted regarding this pact, was solved soon. Taiwan’s Labour Minister, Hsu Ming-chun found herself embroiled in a storm of criticism following her recent remarks about the recruitment of Indian migrant workers. In an interview, she stated that Taiwan would initially focus on hiring workers from northeastern India because their “skin colour and dietary habits are closer to ours.” The comments sparked outrage and accusations of racism.
She further added that “most of them believe in Christianity.” The comments sparked outrage and accusations of racism. While New Delhi did not publicly react, members of Taiwan’s ruling Democratic Progressive Party (DPP) expressed their disapproval. Minister Hsu later clarified that her intention was to highlight the abilities and performance of Indian workers. She praised their attributes but inadvertently stirred controversy with her initial comments.
The incident triggered discussions on social media, with Taiwanese citizens expressing concerns about women’s safety and potential crime rates due to an influx of labourers. The issue went beyond mere recruitment—it touched on broader societal perceptions and stereotypes against the people who belong from India. Minister Hsu’s apology served as a reminder that words matter, especially when discussing matters of race and identity.
Facing the China Challenge
In 2020, there were deadly clashes between Indian and Chinese troops along the disputed Himalayan border, raising concerns about a potential escalation. In May 2024, China has started large-scale military exercises surrounding Taiwan. This included maneuvers very close to the island, which some analysts say could lead to accidental clashes between Chinese and Taiwanese forces.
The increased tensions between China and Taiwan, coupled with India’s growing closeness with Taiwan, raise several risks:
- There is a danger that a miscalculation by either side could lead to a military confrontation. Even a minor incident at sea or in the air could quickly escalate into a larger conflict.
- Increased tensions in the Taiwan Strait could have a destabilizing effect on the entire region, with potential economic and security implications for countries like India, Japan, and the United States.
India has joined forces with other countries concerned about China’s growing power. It is part of the Quadrilateral Security Dialogue (Quad) along with the US, Japan, and Australia. This group is seen as a counterbalance to China’s influence in the Indo-Pacific region.
By discreet military cooperation, India and Taiwan relations should also be solidified to become more resilient in the face of Chinese pressure.
Future of India and Taiwan relations
The future of India and Taiwan relations is closely tied to the broader geopolitical landscape in the Indo-Pacific region. As India’s influence grows and China’s assertiveness continues, the delicate balancing act between these two Asian giants will shape the path forward.
India’s recalibration of its Taiwan policy, moving away from strict adherence to the “One China” principle, indicates a willingness to engage more openly with Taiwan.
India sees Taiwan as a valuable partner in areas such as technology, manufacturing, and trade. Talks about an FTA between India and Taiwan have gained momentum. Such an agreement would facilitate smoother trade flows, enhance economic cooperation, and provide a framework for deeper engagement.
While formal diplomatic ties to enhance India and Taiwan relations remain distant due to India’s cautious approach, unofficial interactions are likely to increase.
The stability of the Taiwan Strait remains critical. Any escalation in tensions between China and Taiwan could impact India and Taiwan relations. Both countries share interests in sectors like semiconductors, where Taiwan’s expertise can benefit India’s self-reliance goals. Collaborations in research, development, and innovation are expected to strengthen.
The relationship between India and Taiwan although remains complex, caught between India’s desire for economic partnership and its wariness of a new dispute with China. Despite the absence of formal diplomatic ties, there’s potential for India to deepen its engagement with Taiwan, particularly in trade and technology. However, navigating this relationship will require careful diplomacy to balance India’s strategic interests in the Indo-Pacific.
