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  5. India sets its sights on Taiwan deal as Modi ratchets ..

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India sets its sights on Taiwan deal as Modi ratchets up tensions with China

About 60,000 troops on each side are stationed along the China-India common border in the Himalayas. Photo: TAUSEEF MUSTAFA/AFP via Getty Images

But New Delhi is also becoming increasingly wary of its neighbor's actions in the wider Indo-Pacific region, where Beijing is increasing its military presence.

Both powers are conducting maneuvers. India recently opened its own military facility near the Maldives amid concerns that China is seeking bases in nearby Sri Lanka and Pakistan.

Chinese President Xi Jinping, meanwhile, is trying to thwart India's ambitions to play a larger role. on the world stage.

Beijing vetoed its neighbor's proposal to join the Nuclear Suppliers Group in 2016, blocked New Delhi's attempts to place Pakistan-based terrorists on global watch lists and has repeatedly denied its attempts to join the powerful UN Security Council.

It despite support from all other current members, including Russia.

Against this backdrop, India is seeking to strengthen closer alliances with partners including the US, Australia and Japan, which are members of the Quad. security alliance to help deter Chinese aggression.

However, given Modi's unexpected loss of his parliamentary majority in India's last elections, forcing him to rely on coalition partners, his latest position on Taiwan may be a sign of the strength of his foreign policy.

“Symbolically, this demonstrates attempts to send a signal to Beijing that despite the Modi government's weakening mandate, India will maintain its more assertive and strong foreign policy and will not succumb to pressure from China at the border,” says Dr. Chietij Bajpai, senior research fellow at South Asia at the foreign policy think tank Chatham House.

After Modi's unexpected loss of his parliamentary majority, his position on Taiwan may be a sign of strength in foreign policy. Photo: ARUN SANKAR/AFP

“More broadly, New Delhi is trying to show it has the means to counterbalance China's encroachment into India's sphere of influence in South Asia by deepening engagement with Taiwan.”

However, India's ties with Taiwan are not just for show.

New Delhi has no formal diplomatic relations with the self-governing island but has sought a deeper economic partnership with Taipei since the 1990s.

This has included attracting investment from Taiwan and, more recently, reaching agreements that allow more number of Indian migrants will go there to earn money.

In 2022, Taiwan exported about $3.4bn (£2.66bn) worth of goods to India, including $937m worth of integrated circuits, and other major exports including plastics, computers and office equipment.< /p>

The jewel in Taiwan's economic crown, however, remains its unparalleled ability to produce semiconductors, also known as microchips, a technology in which India is increasingly seeking a foothold.

Although the Modi government has been careful to guard against Chinese interference in sensitive technology areas, it has sought to attract Taiwanese firms, including by rolling out a $10 billion scheme to boost domestic manufacturing.

“Indians are very concerned about any potential leverage that China might have over them,” says Sgt. “And like many other countries, they would like to get a piece of the Taiwanese semiconductor pie.”

India has so far had only limited success in chip manufacturing: Taiwanese firm Powerchip has teamed up with Mumbai's Tata to set up India's first state-of-the-art chip manufacturing plant (capable of producing 12-inch silicon wafers).

To attract more investment from Taiwanese chipmakers, Taipei argues that a free trade agreement is needed.

This would demonstrate an attempt to counter Beijing while improving India's industrial capabilities.

“Essentially, a key goal of the Modi government is to transform India into a global manufacturing hub, especially in critical and emerging technologies, including semiconductors,” explains Chatham House’s Bajpai.

“Closer cooperation with Taiwan is key to achieving this goal: hence Modi's tweet that he hopes for a closer «economic and technological partnership.» 

India is keen to attract further Taiwanese investment and technology transfer.

Modi's social media post on Wednesday could well be the latest example of a foreign leader pushing back against China's efforts. isolate Taiwan while subtly challenging Beijing.

For example, Lord Cameron, the British Foreign Secretary, was recently among world leaders to congratulate Taiwan's president on his election victory, although without mentioning his title.

< p> «This is partly a response to China's gray zone tactics, which are aimed at breaking the will of the Taiwanese people and forcing them to give up their sovereignty without a fight,» says Sgt. p> >

“So all these little actions are meant to push back a little bit and help.”

So even as the mandate weakens, Modi seems keen to show how India will join the West in refusing to bow to China.

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