India To End Its Dependence On China In Electronics
India to end its dependence on China in electronics and technology, now moving towards a trade agreement with Taiwan.
India may enter into a trade agreement with Taiwan with a view to completely end its dependence on China in electronics and technology.
The Ministry of Commerce and Industry has started preparations in this direction. According to ministry sources, Taiwan is also showing interest in a trade deal with India.
Taiwan is getting closer to India these days because of Taiwan’s bitter relationship with China. Last month, officials from the Ministry of Commerce and Industry met with Taiwanese companies.
Currently, Chinese companies dominate the Indian smartphone market and four percent of Chinese companies account for 70 percent.
Although these companies are manufacturing in India, many parts are being imported from China. According to ministry sources, a trade deal with Taiwan could end China’s dominance in the smartphone phone market.
Taiwan is the main producer of semiconductors and the government has long wanted to set up a semiconductor manufacturing plant in India.
A bilateral investment agreement was signed between the two countries in the year 2018.
According to ministry sources, preparations are now underway to take this agreement to the next level. According to ministry sources, the trade agreement will also increase the export of Indian goods to Taiwan.
Currently, India’s imports from Taiwan are increasing while Indian exports to Taiwan are decreasing.
According to the Commerce Ministry, India imported 10% more from Taiwan in FY 2019-20 than in FY 2018-19 while our exports decreased by 5% during this period.
Taiwanese companies coming to India
Taiwanese company Pegatron, which produces iPhones, has announced an investment in India in July this year. With the introduction of Pegatron to India, in the future Indian phone manufacturers can also get the benefit of Pegatron.
Taiwan-based Foxconn, a chipmaker for many of the world’s leading phone manufacturers, has also announced a billion-dollar investment in India. Foxconn plant to be set up in Tamil Nadu.
Wistron, a Taiwanese company that makes equipment related to the production of electronics, has also announced setting up of units in Karnataka with an investment of $ 165 million.
Taiwanese tire company Maxis also announced a 40 crore investment in India in March this year. According to the Commerce Ministry, India relies heavily on China for electronics goods equipment.
Having a trade agreement with Taiwan will further deepen relations between the two countries, which will benefit India.
