New Delhi: The Federation of Indian Chambers of Commerce and Industry (FICCI) has identified five major manufacturing sectors in India with substantial investment potential for Taiwan. In its report, titled "Unlocking the Potential: The Benefits of India as a Partner for Taiwanese Enterprises," FICCI highlights a USD 15 billion investment opportunity for Taiwanese companies in India's rapidly growing electronics and electric vehicle (EV) sectors.
The sectors identified include Printed Circuit Boards (PCBs), electronic components such as semiconductors and passive devices, electric motors, CCTV systems, and smart healthcare products, including fitness trackers and heart rate monitors.
Currently, the value of the Indian market in these sectors is approximately USD 60 billion. As Taiwan's industry targets both domestic and export markets, this partnership is seen as a pathway to significant growth.
By 2030, demand across these five sectors is projected to reach USD 170 billion, showcasing India's appeal as an investment destination for Taiwanese businesses.
The report emphasises the mutual benefits of closer collaboration between Taiwan and India, stating that Taiwan's technological advancements can propel India's economic growth. By leveraging their expertise in high-tech manufacturing, Taiwanese firms can access India's expanding market, offering global expansion opportunities while contributing to India's development.
India's pro-investment policies, including the India Semiconductor Mission (ISM) and the Production-Linked Incentive (PLI) Scheme, further solidify its position as a manufacturing hub. These government initiatives, along with significant improvements in infrastructure and logistics, make India an ideal partner for Taiwanese companies seeking to diversify and mitigate risks in their global operations.
The FICCI report highlights India's strategic advantages over other Southeast Asian nations, presenting it as the preferred destination for Taiwanese firms looking to diversify investments and reduce risks.
Taiwan, known for its strong technological and manufacturing capabilities, can find a stable business environment, a large skilled workforce, and supportive government policies in India.
Amid global economic shifts, the FICCI report underscores how India's focus on economic reforms, infrastructure development, and digital progress has positioned it as a key player on the international stage. India's growing capabilities in electronics manufacturing, green energy, electric vehicles, smart cities, and information and communication technology (ICT) align well with Taiwan's priorities, creating a robust foundation for bilateral cooperation.
FICCI has reiterated its commitment to enhancing India-Taiwan business relations through targeted initiatives, establishing various mechanisms to promote investment and collaboration across sectors, thereby creating new opportunities for growth and innovation. This collaborative effort embodies a shared vision for both nations to strengthen supply chains, advance new technologies, and tackle global economic challenges together.
BI Bureau
