Deepening India-Taiwan Partnership in Semiconductors, AI and Green Energy: FICCI Report on India-Taiwan Economic Relations

01 January 2026: FICCI recently released its Knowledge Report at 4th India-Taiwan CEOs Round Table, jointly organized by FICCI and TAITRA. The report titled ‘India-Taiwan Economic Relations: New Frontiers of Cooperation’, highlights that bilateral trade has more than doubled in five years – from around USD 5.65 billion in 2020-21 to around USD 11.78 billion in 202425. The report notes India’s increasing demand for Taiwanese high-tech inputs, with imports touching USD 10 billion in 2024-25. While India’s exports to Taiwan increased modestly from USD 1.62 billion in 2020-21 to USD 1.78 billion in 2024-25, imports from Taiwan surged sharply from USD 4.03 billion to USD 10.00 billion during the same period.

FICCI report noted that the profile of India’s exports to Taiwan between 2023-24 and 2024-25 reveals both encouraging growth in key industrial commodities and notable shifts in traditional export segments. Overall, the data reflects a broadening trade relationship, with India increasingly exporting value-added industrial inputs and intermediate goods that complement Taiwan’s advanced manufacturing ecosystem. The most striking growth has come from chemicals, which surged from USD 268.82 million to USD 394.67 million, a rise of nearly 47%.

This growth reflects Taiwan’s expanding demand for India’s chemical exports, spurred by the rapid development of its semiconductor and electronics sectors that depend on high-quality chemical inputs.

FICCI report further highlights that the India-Taiwan investment partnership is entering a decisive phase of institutional consolidation and sectoral diversification. Both sides should prioritise building integrated value chains in semiconductors, renewable energy, EVs, and advanced manufacturing, where complementarities in scale and technology are most evident. Expanding joint R&D programs, co-funded innovation centres, and academic-industry linkages can create a predictable pipeline of talent and applied research outcomes. At the same time, targeted fiscal incentives, ease of doing business reforms and risk-sharing instruments can further catalyse private investment.

Report identifies Semiconductors, Electric Vehicles, Green Mobility, and Artificial Intelligence as emerging pillars of partnership, citing significant opportunities for joint ventures in Outsourced Semiconductor Assembly and Test (OSAT) facilities, wafer-level packaging, renewable energy technologies, solar efficiency solutions and EV-related manufacturing. It also highlights the need for India to diversify exports beyond chemicals and metals to address the current trade imbalance.

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