Project Leader: Dr. Rajat Kathuria and Dr. Arpita Mukherjee
Research Team: Mansi Kedia and Divya Satija
Commencement: May 2012
Completion: January 2013
Funded by: Taipei Economic and Cultural Centre in India
India and Taiwan have set up an Inter-Ministerial Secretary level dialogue process. One of the key objectives of this is to identify mutual areas of collaboration between the two countries and facilitate investment inflows from Taiwan to India. In this context, the study will focus on analysing the investment climate in India with respect to Taiwanese businesses. The study will examine the current state of investment, its potential, and draw policy recommendations. The analysis will be based on both secondary and primary data focusing on a few select sectors. The sectors include: information and communication technology, machine tools, retail, transport and logistics, auto and auto components, and food processing. Additionally, the study will evaluate the existing regulatory regime governing foreign direct investment (FDI) in a few specific states in India with respect to Taiwanese businesses. The selected states include: Tamil Nadu, Gujarat, Karnataka, Maharashtra, West Bengal, Andhra Pradesh and the National Capital Region (Delhi, Gurgaon, and New Okhla Industrial Development Authority). The secondary data analysis will provide a perspective on the magnitude of investment flows from Taiwan to India vis-a-vis other competing nations in East Asia such as Korea, Japan, and China and also the traditional investors from the US and Western Europe. The primary data analysis will assist in identifying both general and idiosyncratic barriers impeding investment flows from Taiwan. Based on the results, the study will provide policy recommendations including a description of the existing barriers to investment