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Erschienen in:
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2013 | OriginalPaper | Buchkapitel

3. India and Taiwan in a Post-ECFA Ecosystem

verfasst von : Joe Thomas Karackattu

Erschienen in: The Economic Partnership Between India and Taiwan in a Post-ECFA Ecosystem

Verlag: Springer India

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Abstract

The first segment of this study laid out the policy shifts that have occurred in the context of Cross-Strait ties, specifically outlining the economic and political circumstances that the post-ECFAECFA ecosystem could present to Taiwan. As discussed earlier, it is hoped that normalization of relations between Taiwan and Mainland China would set the stage for more trade liberalization agreements with other trading partners—and not be limited to an ECFA-only framework.

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Vorheriges Kapitel Taiwan’s Political and Economic Ecosystem
Nächstes Kapitel Conclusion and Future Directions
Fußnoten
2
The CIER estimates the cumulative Taiwanese investment in India at USD 1.5 billion, while Indian cumulative investment is estimated at USD 45 million, currently (Author’s interview at CIER, Taipei).
 
4
IE Singapore and Taiwan External Trade Development Council 2010.
 
5
Author’s interview at CIER, Taipei.
 
8
Other challenges Taiwanese firms face includes differences in business practices and solutions (Shrivastava 2011).
 
11
Author’s interview with Kristy Hsu, Associate Research Fellow at the Taiwan WTO Center, Chung-Hua Institution for Economic Research (CIER) on 18 June 2012 in Taipei, Taiwan.
 
12
This has been acknowledged at the leadership level. Francis Kuo-Hsin Liang’s (Vice-Minister, Ministry of Economic Affairs, Taiwan) interview to Hindu Business Line states, “we have to overcome the cultural barriers between us. We now know each other better and better. I am sure more investment will follow”. Another hurdle noted was the “complex tax system in India both at the Central and State-level” (Francis Kuo-Hsin Liang’s 2011).
 
13
Department of Electronics and Information Technology (DeitY), Ministry of Communications and Information Technology, Government of India (2011); Accessed online at URL: http://​www.​mit.​gov.​in/​sites/​upload_​files/​dit/​files/​annualreport2010​-2011.​pdf.
 
14
Ibid.
 
17
The investments flowed to five principle sectors in the IT industry—online businesses, IT services, IT-enabled services and software and hardware merchandise; Ernst and Young (2012).
 
18
See Appendix 3 for budgetary outlays for 2011–2012.
 
19
While domestic production in 2008–2009 was approximately USD 20 billion, actual domestic value-addition ranged between 5 and 10 % in most cases. NPE 2011 is set to change this with measures such as setting up of over 200 Electronic Manufacturing Clusters (EMCs) with world class logistics and infrastructure allowing easier business facilitation. See http://​www.​mit.​gov.​in/​sites/​upload_​files/​dit/​files/​Draft-NationalPolicyon​Electronics2011_​4102011(2).​pdf.
 
23
In April 2011, the Cabinet approved the proposal for setting up of an Empowered Committee for identifying technology and investors for setting up of Semiconductor Wafer Fab Manufacturing Facilities in the country.
 
28
The need for “signature collaboration” in this sector is a key policy stress in this study. The idea is to focus on projects which generate a sense of public goodwill apart from the market logic attached to the project itself. Some illustrative cases in this regard include Japan’s Suzuki Corporation’s nurturing of Maruti-Suzuki in India which generated a sense of public goodwill for Japan both for its management culture and the affordable car it offered to the masses. Yet another instance has been Japan’s participation in both the Delhi metro and the Delhi-Mumbai industrial corridor projects.
 
30
India’s demographic profile with over 60 % of population in the working age group of 15–59 years presents both an opportunity and a challenge. Nearly 85 million persons will be added to the labour force between 2007 and 2017. See http://​www.​mit.​gov.​in/​sites/​upload_​files/​dit/​files/​annualreport2010​-2011.​pdf.
 
31
Department of Industrial Technology (DoIT), Ministry of Economic Affairs, 2011; Accessed 21 January 2012 URL: Web: http://​investtaiwan.​nat.​gov.​tw/​matter/​show_​eng.​jsp?​ID=​433.
 
32
Annex to press note no. 2 (2011 series), “National Manufacturing Policy”, File No 10 (6)/2010-MPS, dated 4 November 2011.
 
33
“Manufacturing to contribute 25 % of GDP within a decade”, The Hindu, October 25, 2011; URL: http://​www.​thehindu.​com/​business/​Industry/​article2570702.​ece.
 
34
For a discussion on this subject in a different context, see Karackattu (2012) on ‘social capital’.
 
35
Field interviews.
 
40
The author’s interaction with graduate students at Chiayi’s National Chung Cheng University and Hualien’s National Dong Hwa University has been a learning experience. Students at the Institute of Strategic and International Affairs Studies (ISIA) in Chiayi, for instance, asked this author whether the shifting demographic profile in India and China could result in a role reversal in their present roles viz. could India become the next factory of the world and vice versa for China’s services leap in the coming decades. Likewise, grad students in Hualien were interested to know if China could become a democracy any time soon, and how that could shape India–China relations in the future. Such interest and insight will go untapped if only a Delhi centric or Taipei centric approach is adopted.
 
41
Shimano, the world’s leading producer of bicycle gear boxes, came to Kunshan together with “Giant” of Taiwan, the world’s largest bicycle manufacturer; Toyota Boshoku came to Kunshan together with its joint venture partner in Taiwan, Liuho Machinery; Mabuchi, the world leading producer of micro-motors also came to Wujiang with its Taiwanese partner.
 
42
This is an unofficial translation of part of Nobuyuki Idei’s speech in Taipei on the 8th of December, 2009 cited in Chen et al. (2011a).
 
43
Author’s interview with Prof Tien Hung-Mao, President, Institute for National Policy Research (INPR) on 8 May 2012 in Taipei, Taiwan.
 
44
Prof Tien refers to the cultural-historical experience of Chinese workers both relating to Japanese war time history, and also the unique environment of the Communist Party’s exhortation of workers over the years, which has given Taiwanese management a unique place that meets the comfort levels of Chinese workers (as compared to working under Japanese managers).
 
45
Taiwan has prior experience in the form of formal co-partnering with Singapore as well. TAITRA and International Enterprise (IE) Singapore (IE is the government agency driving Singapore’s external economy) have co-organized a forum to encourage collaboration between Taiwanese and Singapore companies to grow their business in India; see “IE Singapore and Taiwan External Trade Development Council organize first forum discussion to promote Singapore-Taiwan Collaboration in India”, MR No.: 019/10, Singapore, Wednesday, 14 April 2010; URL: http://​www.​iesingapore.​com/​wps/​portal/​.
 
46
Prof Tien concurs with this strategy, especially for Taiwanese companies to work closely with Japanese companies for the cumulative experience the latter have had in India.
 
47
“Successful Japan Taiwan collaboration in Kerala State Industrial Development Corporation (KSIDC) project”, URL: http://​www.​ksidc.​org/​ongoing-projects.​php.
 
48
An interesting observation here is that prior to the “formal unofficial relationship” taking off between India and Taiwan in the mid-1990s, Taiwan procured 132 train coaches from India in 1973—of which 38 coaches are still running; Frank Fan, Director-General, Taiwan Railways Administration (TRA) cited in Janakiraman (2011); It is fascinating that from that time, unto today, Taiwan moved on from buying coaches from India to being a participant of key turnaround infrastructure projects in India.
 
49
CEC International Corporation India Pvt. Ltd. (CICI) is 100 % subsidiary of Continental Holdings Corporation (CHC) Taiwan. See http://​www.​cici.​co.​in/​index.​php?​option=​com_​content&​task=​view&​id=​67&​Itemid=​326.
 
50
Allied areas of cooperation could include biotechnology and genomics, Taiwan’s expertise in building quakeproof buildings, among others. See Janakiraman (2011).
 
51
As per the latest biennial report of the ROC Council for Economic Planning and Development Taiwan’s population is forecast to peak at 23.7 million in 2025 (projected growth rate of 0.19 % in 2012 and minus 1.16 % in 2060). Significantly, the age-group of 18–64 years is projected to drop sharply from 74.2 to 50.7 % of the population pyramid—which implies a dependency ratio of 97 persons in 2060 (over two-times the 2012 figure of 35 persons). See http://​taiwantoday.​tw/​ct.​asp?​xItem=​193906&​ctNode=​413.
 
52
Joint bidding of global tenders for pharma export orders is very well within reach. India and China are expected to propel the global pharma market to $1.1 trillion by 2014. Both countries reported trade worth $3.1 billion in the pharmaceutical sector, including medical devices, in the first ten months of 2010. Trade during the previous fiscal year stood at $2.8 billion. See The Hindu, “India, China can propel global pharma market to $1.1 trillion”, 16 December 2010, (accessed 11 February 2011), http://​www.​thehindu.​com/​business/​Economy/​article954594.​ece.
 
53
The need for readily available sectoral studies was identified to this author even at the interview at CIER, where it was suggested that even mere signaling in this direction could encourage/stimulate economic activity.
 
Literatur
Annex to press note no. 2 (2011 series) “National Manufacturing Policy”, File No 10 (6)/2010-MPS, dated 4 November 2011
Chen T-J (2008) The Creation of Kunshan ICT Cluster. Working Paper Series Vol. 2008-07, The International Centre for the Study of East Asian Development, Kitakyushu, April 2008, pp 23–25
Chen S-H, Wen P-C, Liu M-C (2011a) Trends in public and private Investments in ICT R&D in Taiwan, European Commission Joint Research Centre, Institute for Prospective Technological Studies, Publications Office of the European Union, Luxembourg, Apr 2011
Elcomos Report (2012) Electronic components, hardware market manufacturing output study including related assemblies & value chain in India, January 2012. ELCINA Electronic Industries Association of India, New Delhi
Export Import Bank (EXIM Bank), Government of India (2010) Annual report of the EXIM Bank 2009-10
Karackattu JT (2012) Social capital and its significance in reimagining Chindia. Strateg Anal 36:23–29; (Taylor & Francis Group, Routledge)
Liu F-K (2008) “Towards a dynamic economic partnership: India-Taiwan relations update”. In: Kesavapany K, Mani A, Ramasamy P (eds) Rising India and Indian Communities in East Asia, Institute of Southeast Asian Studies
Manufacturers’ Association for Information Technology (MAIT) (2008) Report on mapping the manpower skills in the IT Hardware and Electronics Manufacturing Industry—a study for the Department of Information Technology, Government of India, September 2008
Ministry of communications and information technology (DoIT), Notification dated 10 February 2012, “Preference to domestically manufactured electronic goods in procurement due to security considerations and in government procurement”, No 8 (78)/2010-IPHW, The Gazette of India—extraordinary, No 44, Part 1 Section 1, Published 15 February 2012
Rosen D, Wang Z (2011) The implications of China-Taiwan economic liberalization, policy analyses in international economics 93, Peterson Institute for International Economics, Washington, Jan 2011
TIER-SERI (2007) Study on Korean and Taiwanese Investment Patterns in China, February 7–June 30, 2007, A Joint Research Project by Taiwan Institute of Economic Research and Samsung Economic Research Institute. Taiwan Institute of Economic Research, Taipei, p 217
Wang J-C (2010) The strategies adopted by Taiwan in response to the global financial crisis, and Taiwan’s role in Asia-Pacific economic integration. Jpn World Econ 22(44):254–263
Metadaten
Titel
India and Taiwan in a Post-ECFA Ecosystem
verfasst von
Joe Thomas Karackattu
Copyright-Jahr
2013
Verlag
Springer India
Buch
The Economic Partnership Between India and Taiwan in a Post-ECFA Ecosystem

Print ISBN: 978-81-322-1277-5

Electronic ISBN: 978-81-322-1278-2

Copyright-Jahr: 2013

DOI
https://doi.org/10.1007/978-81-322-1278-2_3