Taiwan's New Office In Mumbai To Promote Ties, Help Businesses Expand Under 'China-Plus-One' Strategy

Taiwan has announced its plans to open a new office in Mumbai making it their third office in India after Delhi and Chennai. This move comes at a time when Taiwanese tech firms are considering relocating their manufacturing facilities from China to India.

The decision is seen as part of Taiwan's 'China-Plus-one' strategy, which encourages businesses to expand outside of China while maintaining their presence there.

Despite India adhering to the One-China policy and not having formal diplomatic ties with Taiwan, the latter has established Taipei Economic and Cultural Centres in India to conduct business.

These centers represent Taiwan's interests in the absence of an embassy. While the office in Delhi functions as an embassy, the center in Chennai operates as a consulate.

Taiwan’s Foreign ministry on Wednesday (5 July) said in its official statement 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”.

It further stated, “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.”

The center will also provide visa services, document authentication, and emergency assistance to businesspeople, tourists, and Taiwanese nationals in specific regions of India.

Taiwan's New Southbound Policy aims to strengthen ties with western India through exchanges and cooperation in science and technology, education, culture, and people-to-people connections.

Since the establishment of the TECC in Chennai in 2012, around 60 per cent of Taiwanese businesses investing in India have chosen to develop their operations in southern India.

The investments made by Taiwanese manufacturing industries have greatly benefited Chennai and its surrounding areas. The opening of the TECC in Mumbai is expected to have a similar positive impact in western India.

India's rise as the world's fifth-largest economy in 2022, coupled with its growing population, has made it an attractive investment destination for global enterprises.

Mumbai, being the largest city in India and serving as the country's financial center with a major port, has attracted consulates from various countries including the United States, Japan, the United Kingdom, and Australia. This makes Mumbai an ideal location for the establishment of the TECC.

Foxconn, a Taiwanese company and Apple's largest supplier, currently operates an iPhone manufacturing facility in Tamil Nadu. They are also in the process of setting up another iPhone production facility in Karnataka, which is expected to commence production by April next year.

Some statistics

Taiwan is a leading producer of semiconductors, manufacturing nearly 70 per cent of the world's supply. Additionally, they produce over 90 per cent of the most advanced chips used in various electronic devices such as smartphones, car components, data centers, fighter jets, and AI technologies.

The bilateral trade between India and Taiwan has been steadily increasing. In 2006, the volume of trade between the two countries stood at USD 2 billion, which has now grown to USD 8.9 billion in 2021. This growth in trade reflects the strengthening economic cooperation and mutual benefits between India and Taiwan.