**Taiwan Seeks Free Trade Agreement with India: Here’s Why**
*By Mudit Dube | Oct 07, 2025, 05:42 PM*
Taiwan has expressed interest in establishing a free trade agreement (FTA) with India, aiming to strengthen bilateral relations and unlock new economic opportunities for both countries. According to Kristy Hsu, Director of the Taiwan-ASEAN Studies Center at Chung-Hua Institution for Economic Research, such an agreement would be mutually beneficial, particularly as Taiwanese businesses and their clients look to reduce dependence on China.
**Tariff Reduction: What Taiwan Wants from India**
Hsu highlighted that Taiwan is open to reducing tariffs on Indian agricultural products through an FTA. At the same time, she emphasized that if India lowers tariffs on imported components crucial for Taiwanese companies manufacturing within the country, it could significantly boost trade ties.
Additionally, Hsu suggested that India could attract more Taiwanese investments by relaxing labor laws and streamlining work visa procedures, making it easier for Taiwanese firms to operate in India.
**Surge in Taiwanese Investments in India**
Taiwanese companies have been actively increasing their investments in India, focusing on sectors like electronics manufacturing, semiconductors, and electric vehicles. Prominent Taiwanese firms such as Foxconn, Wistron, and Pegatron mainly import electronic integrated circuits, semiconductors, and EV components or machinery from Taiwan.
The growing economic relationship is reflected in the bilateral trade volume, which reached $11.8 billion in fiscal year 2025—a 17% increase compared to the previous year.
**Significant Growth in Foreign Direct Investment**
Foreign direct investment (FDI) from Taiwan is also on the rise. Over the last decade, Taiwanese companies have shown increased interest in investing in India. The Taiwan Chamber of Commerce in India (TCCI) has seen its membership nearly double, growing from 80 companies in 2015 to close to 200 today.
According to India’s commerce and industry ministry, FDI inflows from Taiwan exceeded $665 million between 2018 and 2024, underscoring the deepening economic engagement between the two nations.
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As Taiwan pursues an FTA with India, both countries stand to gain from enhanced trade cooperation, diversified supply chains, and stronger investment linkages moving forward.
https://www.newsbytesapp.com/news/business/taiwan-proposes-fta-with-india-to-boost-farm-exports/story
