**Taiwan Seeks Free Trade Agreement with India: Here’s Why**
*By Mudit Dube | Oct 07, 2025, 05:42 PM*
Taiwan has expressed keen interest in establishing a free trade agreement (FTA) with India, a strategic move aimed at strengthening bilateral ties and unlocking new economic opportunities for both countries.
Kristy Hsu, Director of the Taiwan-ASEAN Studies Center at Chung-Hua Institution for Economic Research, highlighted that such an FTA would be mutually beneficial. She noted that Taiwanese businesses and their clients are actively seeking to reduce their dependence on China, making diversification towards India an attractive prospect.
### Taiwan’s Tariff Reduction Offer
Hsu revealed that Taiwan is willing to reduce tariffs on Indian agricultural products as part of the FTA negotiations. On the other hand, she emphasized that if India lowers tariffs on components imported by Taiwanese companies manufacturing within India, it could significantly boost trade between the two nations.
Moreover, Hsu suggested that India could attract more Taiwanese investment by easing labor laws and streamlining visa processes for workers, creating a more conducive environment for business growth.
### Surge in Taiwanese Investments in India
Taiwanese companies have been ramping up their investments in India, particularly in sectors like electronics manufacturing, semiconductors, and electric vehicles (EVs). Major Taiwanese firms such as Foxconn, Wistron, and Pegatron primarily import electronic integrated circuits, semiconductors, and EV components from Taiwan to support their Indian operations.
The bilateral trade volume between India and Taiwan reached $11.8 billion in the fiscal year 2025, marking a 17% increase from the previous year — a clear indicator of deepening economic ties.
### Growth in Foreign Direct Investment
Over the past decade, Taiwanese investment interest in India has steadily increased. The number of member companies at the Taiwan Chamber of Commerce in India (TCCI) has nearly doubled, rising from 80 in 2015 to close to 200 today.
According to India’s Ministry of Commerce and Industry, foreign direct investment (FDI) from Taiwan exceeded $665 million between 2018 and 2024, underscoring the growing confidence Taiwanese businesses have in the Indian market.
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The pursuit of a free trade agreement reflects both countries’ desire to deepen cooperation and reduce reliance on other markets, positioning India and Taiwan as significant partners in the evolving global economic landscape.
https://www.newsbytesapp.com/news/business/taiwan-proposes-fta-with-india-to-boost-farm-exports/story
