India to emerge as new source of labor for Taiwan  

India and Taiwan have signed a migration and mobility agreement that will allow Taiwanese companies to hire migrant laborers from India. 

The memorandum of understanding (MoU) was signed via video conference by Baushuan Ger, the head of the Taipei Economic and Cultural Centre in New Delhi, and Manharsinh Laxmanbhai Yadav, director general of the India-Taipei Association (ITA), Press Trust of India reported. 

The two sides have been engaged in discussions over the pact for the last several years.

The Taiwanese labor ministry said both parties will promptly proceed with the necessary procedures, exchanging letters, and convening working-level meetings to delve into specifics such as designated industries, quota allocations, regions of recruitment in India, employment criteria, and recruitment methods.

“The industries and number of Indian migrant workers to be opened shall be decided by the Taiwan side; the Indian side will recruit and train Indian migrant workers according to Taiwan’s needs, and introduce employment in accordance with the laws and regulations of both sides,” the Taiwanese labor ministry said.

Upon completion of preparatory measures, India will be formally recognized as a “new source” country for migrant labor, granting employers the flexibility to select workers from a variety of source countries per their specific needs.

Presently, Taiwan primarily sources migrant workers from countries like Vietnam, Indonesia, the Philippines, and Thailand.

Both sides are committed to subsequent discussions to finalize the implementation process of the migration pact.

During these deliberations, the focus will be on identifying suitable industries for Indian workers, determining the number of available positions, specifying recruitment regions within India, establishing employment prerequisites including language proficiency, and refining recruitment strategies.

The Taiwanese labor ministry emphasized the urgent need for additional labor due to the country’s aging population and declining birth rates. Industries such as manufacturing, construction, agriculture, and caregiving are facing severe labor shortages, necessitating the exploration of alternative labor sources.

Indian workers are mostly engaged in construction, manufacturing, housework, and agricultural work overseas, which meets Taiwan’s demand for migrant workers. 

While China considers Taiwan as a part of its mainland, the island nation is a self-ruled autonomous country.

India and Taiwan do not have formal diplomatic ties but bilateral trade relations are established through the ITA in Taipei and the Taipei Economic and Cultural Centre in New Delhi.

India is Taiwan’s 17th largest trading partner and 14th largest export destination, and an important partner country under Taiwan’s New Southbound Policy, the data of Taiwan’s ministry of economic affairs said.

Bilateral trade between India and Taiwan totaled $8.45 billion in 2022, registering an increase of 9.8% from the previous year.

In 2022, India’s exports to Taiwan amounted to $3.14 billion, mainly consisting of mineral fuels, aluminum, iron, steel, organic chemicals, and plastics, while Taiwan’s exports to India amounted to $5.31 billion, consisting primarily of plastics, electronic integrated circuits, organic chemicals, and electrical machinery.