India, Taiwan look at deepening trade links

India and Taiwan are exploring opportunities to increase investment and trade with each other, while a similar exercise is yet to be carried out with China, which claims Taiwan as its own.

The ministry of external affairs has funded a study on enhancing trade, investment and cooperation between India and Taiwan, conducted by the Indian Council for Research on International Economic Relations (Icrier).

The report has been prepared and will be taken up for discussion now. India is looking at wholly-owned subsidiaries, partnerships and joint ventures with Taiwanese companies to boost trade ties between the two nations.

However, free trade agreement with Taiwan is not on the cards as India does not have diplomatic relations with the country, an official told The Indian Express.

"Taiwan has shown a lot of interest in investing in India. They are mainly looking at electrical and electronic goods, food processing, machine tools and SME sector in India," the official said.

The two countries have already signed an investment promotion and protection agreement. The foreign direct investment from Taiwan stood at $65.56 million in 2011-12, or 0.04 per cent in the total FDI flow to India.

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