Support is growing within the union government to formally start talks on a trade deal with Taiwan as both democracies see relations with China deteriorate.
Taiwan has sought trade talks with India for several years, but union government has been reluctant to move ahead because it would involve a messy fight with China once any pact is registered at the World Trade Organization relating to Taiwan.
Any formal talks with India would amount to a big win for Taiwan, which 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.”
A trade deal with Taiwan would help India’s goal of seeking greater investments in technology and electronics. But for now it’s unclear when a final decision would be made on whether to start talks.
Earlier this month, the union 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.
- United Nations at 75 plagued by new crises and cash crunch
- Coronavirus: Clashes in Naples (Italy) over tightening restrictions
- US election 2020: How Trump has changed the world
- Sudan normalizes relations with Israel – the latest in a series of Arab League countries to do so
- Poland abortion ruling: Protests spread across the country