Though Taiwan entered the Indian market later than the Japanese and Koreans, it has still managed to attain an unbelievably high rate of growth. With its fast growing economy, India is witnessing a flow in demand for home appliances and Information communication and technology (ICT) products and services. Furthermore, the Indian government is eager to expand the hardware market to match the nation’s advances in software. This opens up many opportunities for strengthening the ties between the two countries as Taiwan’s relative strength in hardware could be meshed with India’s in software. This joint combination up of software and hardware could take place in wireless networks, energy (LED, green power), medical electronics (distant healthcare, equipment), digital (electronic government, virtual classroom) and auto electronics.

On the global map

India is the 13th largest export market for Taiwan. India ranks higher, or has surpassed the UK, Australia, Italy, Canada, France, Brazil and Russia, and offers much better trade growth than these other trade associates. According to a report by the Economist Intelligence Unit, India will exceed China to become the world’s fastest growing economy by 2018. In adding up, the World Economic Outlook report by the International Monetary Fund estimates India’s economic growth rate to be 7 percent, way above than the 2.1 percent of the developed countries. The report ranked India as the world’s second largest market. India and China, as per the report, are the two major engines for global economic growth.

India has become a significant market for Taiwan. Although Taiwan entered the Indian market later than the Japanese and Koreans, it has still managed to achieve an incredible high rate of growth (59 percent and 28 percent in 2007 and 2008, respectively).

Key industry sectors between India and Taiwan

PC and peripherals

• Electronic components and finished products are the potency of Taiwanese manufacturers in tapping the Indian market.

• With a 10.4 percent market share, Taiwanese technology firm Acer became Indian’s third largest PC vendor in the second half of 2009, next to HP and Dell. Acer also expanded its product line of servers and PCs to meet its competitors head on.

3G mobile equipment and phones

• Indian government auctioned licenses for 3G mobile communications in April and lit the 3G business opportunity.

• Taiwan’s HTC Corporation and India’s Bharti Airtel launched 3G-compatible mobile phones.

• Inventec, a Taiwan-based original design manufacturer, joined hands with Reliance Communications to launch a CDMA mobile phone. The company is upbeat towards exploring new forecast in the Indian market.

LEDs

• LEDs or light-emitting diodes hold many advantages over conventional light sources. LEDs are extremely efficient, come in smaller sizes, and also offer lower energy expenditure and longer lifetime. The list of LED applications keeps on growing. Besides the applications for displays and traffic signals, the market for lighting and mobile electronics just keeps increasing. With the rise in optical networks and infrared wireless communications, the LED industry promises vast potential.

• Taiwan is the major global manufacture base for HB (high-brightness) LED. Global LED industry production comes to $50 million with a 5 percent growth rate. Taiwan has been ranked the world’s second best market in HB LED production, next to Japan.