As per South China Morning Post, Taiwanese firms are pivoting to India drawn by its giant market, inexpensive skilled workforce and generous tax breaks, amid the fallout with China.
Taiwan is reducing their dependency on mainland China over various issues.
The Taiwanese company Pegatron, an assembly partner for the US tech giant Apple, earlier this month announced that it was applying for permits to set up its first plant in India.
According to business consultancy Dezan Shira & Associates in New Delhi, there are about 140 Taiwanese companies are now operating in India, mostly in manufacturing. The investments by Taiwanese firms in India had reached USD 360.5 million by the end of 2018.
The firm, which reported revenue of USD 44.8 billion in 2019, normally offshores its orders to its factories in mainland China.
“Because of global impacts from the US-China trade war and the novel coronavirus outbreak, diffusion of risk and allocations is an irreversible trend,” the island government’s InvesTaiwan office told This Week in Asia.
“Taiwan investors considering India see a huge domestic market and ample labour,” the government office added.