Taiwanese official expects more ICT investments in India

A Taiwanese top official expects more suppliers in the ICT ecosystem to invest in India, as the bilateral economic ties are deepening because of global supply chain relocation.

According to the Economic Times, Keven Cheng, deputy executive director of the Taiwan External Trade Development Council, highlighted India's potential to become a primary manufacturing hub. He noted increasing collaboration opportunities between New Delhi and Taipei, particularly in critical technologies like semiconductor and electronics manufacturing.

Cheng emphasized the recent partnership between PSMC and Tata Electronics is indicative of Taiwanese ICT suppliers' growing interest in India. He suggested that technology transfer could potentially occur between PSMC and Tata Electronics in the next 3-5 years, contingent on market demand and a gradual process.

According to data from the Department of Investment Review under the Ministry of Economic Affairs of Taiwan, after 2018, when Taiwan saw the highest outward FDI into India in two decades, 2023 has seen a 330.74% growth in outward FDI into India, with 48 projects approved compared to 39 projects in 2022.

In the meantime, wholesale of computers and peripherals, software and appliances, and data processing, hosting, and related activities accounted for over 40% of outward FDI into India during 2018 and 2023. In 2023, electronic components manufacturing, wholesale of appliances, and lighting manufacturing were the top industries that attracted Taiwanese investors.

Financial Express reported that India's supply chain management market is expected to grow from US$3,4217.17 million in 2023 to US$6433.24 by 2030, with information technology, pharmaceuticals, textiles, and automotive driving India's supply chain growth.

Source: MOEA, June 2024