SMEs from Taiwan facing difficulties in investing in India: Foreign Minister Lin

TAIPEI: Taiwan can assist India in improving its competitiveness and becoming an advanced manufacturing country. However, the small and medium enterprises from Taiwan, which are part of the supply chain that supports a wide variety of industries, are facing many difficulties in investing in India, said Foreign Affairs Minister Lin Chia-lung.

Responding to a query from DT Next on the present scenario and future of economic cooperation between the two countries, the minister noted that there were only about 300 companies from the tech powerhouse that have invested in India, including a couple of big businesses.

“From what I have heard, Taiwanese small and medium enterprises face many difficulties. They are a part of the supply chain to provide components to big businesses. But they face high tariffs,” said Minister Lin during an interaction with select media persons from around the world.

Taiwan can assist India in increasing its competitiveness in various sectors, including information and communication technology, precision machinery, etc., he said. “We hope that India can provide [the SMEs from Taiwan] with a green pathway, zero-tariff [regime], and incentives, so that they can not just be a part of the supply chain but also become an ecosystem so that India to become an advanced manufacturing country,” the minister told DT Next.

‘China behind labour exchange deal stalemate’

To another question from an Indian journalist about the memorandum of understanding on labour exchange that the two countries had signed, Minister Lin said he personally supported the cooperation deal to introduce Indian workers in Taiwan. However, he admitted, the deal has not progressed despite having been signed in February 2024, and blamed China for it.

“The reason behind the scenes is the manipulation and disinformation by the Communist Party of China (CCP, the ruling regime of China). Therefore, our people have some improper or wrong ideas about the India labour deal. The Ministry of Foreign Affairs’ position is to support to realise the MoU as soon as possible. We will coordinate with the Ministry of Labour on this issue, he said.

Minister Lin emphasised that India has many outstanding talents, including immigrants from India who are known for their wonderful performance in various countries. “So, if there are any Taiwanese businesses that would like to introduce Indian labourers, we can handle that as a special case,” he assured.

Earlier, during his introductory remarks to the media delegation, Minister Lin outlined the threats and challenges that his country faces from the Chinese government, which claims Taiwan to be part of its country.

China’s military exercises in the Taiwan Strait and the East and South China Seas have become increasingly interconnected; it is attempting to reshape global perceptions of the cross-strait status quo through military and grey-zone operations; and is increasingly utilizing domestic legislation to lay a legal and political foundation for external suppression, he explained.

On the other hand, there was immense potential for Taiwan and other countries like India to cooperate for security and growth, he said.

Taiwan boasts a dynamic SME sector and comprehensive industrial ecosystems spanning semiconductors, AI, ICT, and advanced manufacturing, while India, Southeast Asia, Australia, and New Zealand offer vast markets, young talent, energy resources, and strong industrial transformation potential.

“For future cooperation, we must look beyond bilateral trade figures. We must think strategically about how investment, technology, talent exchanges, and industrial ties can help us become more trusted and indispensable economic partners to one another. This will enhance the security and resilience of our supply chains,” he added.

(DT Next was part of an international media delegation invited by the Ministry of Foreign Affairs, Taiwan)