New Delhi: The Federation of Indian Chambers of Commerce and Industry (FICCI) has called for a deeper, technology-focused partnership between India and Taiwan, particularly in semiconductors and artificial intelligence (AI). The recommendations were unveiled in FICCI’s latest Knowledge Report, released at the 4th India–Taiwan CEOs Round Table, jointly organized with the Taiwan External Trade Development Council (TAITRA).
Bilateral Trade Sees Rapid Growth
Titled “India–Taiwan Economic Relations: New Frontiers of Cooperation,” the report highlights that bilateral trade between India and Taiwan has more than doubled over the last five years, increasing from USD 5.65 billion in 2020–21 to USD 11.78 billion in 2024–25. This growth has been largely driven by India’s rising demand for advanced Taiwanese high-tech components. Imports from Taiwan reached USD 10 billion in 2024–25, emphasizing India’s reliance on semiconductor-grade materials and electronics supply chains.
Semiconductors: A Key Area for Collaboration
FICCI emphasizes that as India expands its semiconductor manufacturing ambitions—ranging from chip fabrication to OSAT (Outsourced Semiconductor Assembly and Test)—Taiwan’s technological expertise could play a pivotal role. The report recommends building integrated semiconductor value chains that include wafer-level packaging, precision chemicals, test equipment, and advanced manufacturing systems.
India’s chemical sector has already shown strong growth in supporting semiconductor needs, with chemical exports to Taiwan rising nearly 47 percent—from USD 268.82 million to USD 394.67 million in 2024–25—reflecting Taiwan’s increasing dependence on Indian semiconductor-grade inputs.
Artificial Intelligence: Unlocking Joint Innovation
The FICCI report underscores the potential for co-developed AI solutions across sectors such as smart manufacturing, predictive maintenance, healthcare, electric vehicles, green energy, and cybersecurity. It calls for:
Joint R&D programs
- Co-funded AI innovation labs
- Stronger academia-industry partnerships
Such initiatives are expected to help build a robust pipeline of AI talent and enable scalable solutions across both economies.
Policy Recommendations for a Stronger Tech Partnership
FICCI emphasizes that deepening India–Taiwan cooperation in semiconductors and AI will be crucial for creating an innovation-driven economic corridor. To achieve this, the report recommends:
- Targeted fiscal incentives for high-tech investments
- Ease-of-doing-business reforms
- Risk-sharing mechanisms to attract Taiwanese investments
- Diversification of India’s export base beyond chemicals and metals
These measures aim to address the widening trade imbalance while fostering a globally competitive, innovation-centric technological ecosystem.
The Road Ahead
With semiconductors and AI emerging as core pillars of next-generation cooperation, FICCI believes that an India–Taiwan partnership focused on these sectors could evolve into a technological powerhouse, boosting economic growth, innovation, and bilateral trade.
