India is engaged in a border standoff with China since May and now the Centre govt has decided to initiate trade talks with Taiwan, another country which has tainted political ties with China.
According to the report of Bloomberg, Taiwan has sought trade talks with India for several years, but the latter remain reluctant to discuss any further as it might create a fuss with China once any pact is registered at the World Trade Organisation (WTO), said a senior government official who has asked for the anonymity, citing rules for speaking with the media.
However, over the past few months, officials who want to initiate the trade talks with Taiwan are getting the upper hand, said an official.
Notably, if India signs a trade deal with Taiwan it would help India's goal of seeking greater investments in technology and electronics, an official said. However, it remains vague when this decision would be made to initiate the talks.
Earlier this month, the Centre government gave approval to firms including Taiwan's Foxconn Technology Group, Wistron Corp., and Pegatron Corp. as PM Narendra Modi is looking to attract investment worth more than 10.5 trillion rupees ($143 billion) for smartphone production over five years.
Commerce Ministry spokesman Yogesh Baweja didn't immediately respond to a request seeking comment. Taiwan's top trade negotiator, John Deng, didn't immediately respond to emails seeking comment.
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If any formal talks begin, Taiwan would be benefitted the most as the country has struggled to begin trade negotiations with most major economies due to pressure from China. Like most countries, India doesn't formally recognize Taiwan, with the two governments maintaining unofficial diplomatic missions in the form of "representative offices."
India and Taiwan in 2018 signed an updated bilateral investment agreement in a bid to further expand economic ties. Trade between them grew 18% to $7.2 billion in 2019, according to the Department of Commerce.