INTRODUCTION

During most of the 1980s, for stringent political reasons Taiwan and India did not perceive each other as economic partners. Indian socialist economy then could not effectively respond to outside market dynamics. Under such a context, economic development was not the top priority for India and opportunity for economic engagement with the outside world was easily shunned away. In politics, because India was among first countries to recognize China and continues to subscribe to the “One China” policy, it has restrained itself from developing a political relationship with Taiwan. Bilateral trade was rather limited. Due to lack of official ties between India and Taiwan, Taiwanese businessmen often had to go round via joint venture or would have to piggyback with Singaporeans to explore India's market. In general, India's market was then considered not friendly and unyielding to the Taiwanese business community.

Ever since India's economy started to roll out the red carpet to the outside world in 1991, it has been increasingly characterized by strengths in the areas of information technologies, mainly design capabilities and software development. Many countries in East Asia have quickly developed economic cooperation with India and especially their big companies have made their way to get access to India's emerging market. Even though economic incentives increasingly lead to closer links, India's ties with Taiwan have still been confined to informal and non-official approaches. The dynamics of the bilateral ties grows on the levels of economic, commercial, cultural, religious and people to people exchanges. Today, the rise of India may have brought about optimistic prediction of its emerging market. With massive information technology (IT) software talents trained in India, Taiwan's major IT manufacturers have been fascinated by India and are keen to tie up with Indian firms as a way of facing global competition. Over the past few years, building on its industrial strength, Taiwan has increasingly linked with Indian industries. Hundreds of Indian engineers and software developers have been employed in various Taiwanese research institutions and industries in India and Taiwan. Joint scientific exploration between Indian and Taiwanese institutions have been flourishing.