A Taiwan Delegation headed by Mr Ben Wang, Director General of Taipei Economic and Cultural Center in Chennai, was invited to visit the state of Telangana from 28 to 30 July. In addition to attending a roundtable economic conference, the delegation visit two industrial parks and meet with representatives from industries through the arrangement of Invest in India. One of the key agendas is the formation of a Taiwan Cluster.
In south India, Manufacturers with Taiwanese investments such as Foxconn, Pegatron, and Winstron have created successful stories in providing tens of thousands of job opportunities and generating revenues for local government. Nowadays, the restructure of global supply chain is in full swing which highlights the India-Taiwan economic cooperation potentiality.
The conference is hosted by Industrial Minister K.T. Rama Rao who welcomes the Taiwanese delegation. The latter is briefed on the investment scene in Hyderabad where there are special economic zones and HITEC City (Hyderabad Information Technology and Engineering Consultancy City) dedicated to information technology. In addition to that, Hyderabad is the hub of pharmaceuticals and biotechnology. In terms of economic index, Telangana has been top-ranked in Ease of Doing Business and holds the second place in export of ITC products in India. The well-rounded ecosystem together with abundant human capital makes Hyderabad an ideal destination for foreign investors to set up operations there.
Mr Wang reiterates that Taiwan has adopted New South Bound Policy which focuses on India as a vital partner. The two countries are complimentary - India has advantage in labour force, resources, land and market, while Taiwan has talent, capital and know-how in semiconductor and ITC products manufacturing. The India-Taiwan partnership is a win-win situation.
Mr. Wang has observed that India’s government has announced a ban on using fossil fuel vehicles by 2030 which makes the EV manufacturing a rising star industry. He says that, in the next decades, the demand in goods and service like batteries, power charging facilities and internet will also keep growing as a result of EV ear. A snowball effect in industries can thus be expected. India being a big market with a population of 1.3 billion, there is no wonder that India can attract foreign investments, especially Telangana as a favourable destination because of its solid foundation in electronic manufacturing.
However, Mr. Wang points out that Taiwanese investors are currently not as aggressive as they should be due to the Covid-19 pandemic. But he thinks now is the right time to plan ahead for economic recovery and development. He puts emphasis on the improvement on infrastructure, such as stable supply of water and power, and review on incentives measures to attract more Taiwanese investors in the post-pandemic time. Also, he brings to the fore the difficulties most Taiwanese investors have encountered, which includes land issues, administrative efficiency, immigration clearance and visa issuance. Meanwhile, if an issue is of a national nature, it is necessary to for the state government to coordinate with the centre government to work out a solution so that a mutually beneficial relationship would be created for both sides in due course.
Before wrapping up the meeting, Mr. Wang invites Minister Rao to visit Taiwan at the latter’s convenience during the post-pandemic era. The visit will be an opportunity for the Minister and his delegation to meet with business leaders and to promote bilateral economic cooperation.
