Amid a slump in electronics demand worldwide, India's burgeoning economy and growing chip industry have boosted imports from global tech hardware hub Taiwan.
India's imports from Taiwan increased significantly to $5.32 billion in 2022, up from $4.52 billion in 2021 and $2.6 billion in 2020, as per Taiwan's Ministry of Economic Affairs.
In March, the Ministry reported on social media that imports went over $1 billion in the first two months of this year, a rise from $718.4 million in the previous year.
India's 1.4 billion people and absence from US-China trade disputes have led to an increased focus on imports, according to the Ministry.
Due to the US-China trade war, Taiwanese manufacturers have set up factories in India, as it became more expensive to send goods from the mainland to the US.
The strict Covid-19 controls in mainland China also caused a slowdown in factory production and shipping, lasting almost three years until 2022.
Taiwan supplies around 60 per cent of the world's most advanced semiconductors, and technology makes up nearly a third of its GDP.
Last year, chemicals formed 22.9 per cent of Indian imports from Taiwan, the highest percentage of all goods, while electronic parts accounted for 17.5 per cent.
Amid political tensions between Taiwan and mainland China, officials in Taipei have been encouraging businesses to invest in India and South East Asia.
Taiwanese businesses have been investing in mainland China since the 1980s due to lower costs than at home.
India's technology industry is expected to grow rapidly, particularly the chip sector, with a projected compound annual growth rate of 19.7 per cent from 2022 to 2026, according to the portal ResearchAndMarkets.com.
Taiwan, however, faced an 18.3 per cent decline in global export orders in April, year-on-year. The order value for February was $42.12 billion.
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