India reaffirms clear policy on Taiwan encouraging bilateral engagement

Taiwan’s decision to establish an economic and cultural center in Mumbai seen as a step to enhance bilateral ties.

New Delhi: The Ministry of External Affairs (MEA) of India reiterated its policy on Taiwan, stating that it promotes engagement with the island nation across various sectors, including trade and investment. The MEA’s comments came in response to Taiwan’s announcement of establishing a Taipei Economic and Cultural Center (TECC) in Mumbai, emphasizing the need to understand the move in the context of the existing bilateral cooperation.

“Our policy on Taiwan is clear and consistent. The government facilitates and promotes interactions in areas of trade, investment, tourism, culture, education, and other such people-to-people contacts and exchanges,” stated Arindam Bagchi, the spokesperson for the MEA, when asked about Taiwan’s decision. He further emphasized that Taiwan’s establishment of the TECC in Mumbai should be viewed within the framework of this comprehensive engagement.


Taiwan’s decision to set up the TECC in Mumbai aligns with the ongoing trend of leading Taiwanese companies exploring opportunities to relocate their production bases from China to India, the United States, and European countries. This shift comes amid the strained relations between Taipei and Beijing. The relationship between China and Taiwan has been under increasing tension since US House Speaker Nancy Pelosi’s visit to the self-governed island in August last year.

Currently, Taiwan has TECCs in Delhi and Chennai, which have played a significant role in fostering bilateral trade and investment relations. The establishment of the TECC in Mumbai is seen as a substantial signal from both New Delhi and Taipei to enhance the overall trajectory of their ties. India is particularly interested in attracting leading Taiwanese companies, including chip producers like Taiwan Semiconductor Manufacturing Corporation (TSMC), the world’s largest chipmaker and an Apple supplier.

According to the Taiwanese foreign ministry, the decision to establish the TECC in Mumbai is a result of the “significant progress” made in cooperation between India and Taiwan across various sectors, including trade, critical supply chains, science and technology, culture, and education. The Taiwanese government aims to deepen exchanges and cooperation between the two countries through the establishment of the TECC in Mumbai. The ministry also highlighted that since the establishment of the TECC in Chennai in 2012, nearly 60% of Taiwanese businesses investing and opening factories in India have chosen to develop their operations in southern India.

China views Taiwan as its breakaway province and insists on its unification with the mainland, even by force if necessary. However, Taiwan considers itself an independent and sovereign nation. Although India and Taiwan do not have formal diplomatic ties, bilateral trade relations have been growing steadily.

In 1995, the Indian government established the India-Taipei Association (ITA) in Taipei to foster interactions and facilitate business, tourism, and cultural exchanges between the two sides. The ITA has also been authorized to provide consular and passport services. Similarly, Taiwan established the Taipei Economic and Cultural Centre in Delhi during the same year.

The establishment of the TECC in Mumbai marks another significant step in enhancing cooperation and deepening ties between India and Taiwan, reflecting the shared commitment to strengthening bilateral relations and fostering mutually beneficial collaborations.