India, Taiwan move forward with key pact on labour cooperation


In a potential step forward toward the recognition of Taiwan’s sovereignty, India and Taiwan on Friday (Feb 16) signed a significant agreement paving the way for the arrival of Indian migrant workers on the self-ruled island nation which China claims as its own.

The move comes as Taipei aims to diversify its foreign workforce, extending beyond its conventional recruitment from Southeast Asian nations.

Taiwan, the center of world’s semiconductor production has been grappling with an aging population. The self-ruled island nation hosts approximately 700,000 migrant workers, primarily hailing from Vietnam, Indonesia, the Philippines, and Thailand. These workers are predominantly employed in manufacturing roles or serve as home helpers for the elderly.

Implementation details yet to be finalised

The Ministry of Labour in Taiwan announced that the memorandum of understanding was formally exchanged between the de facto embassies in Taipei and Delhi. While the agreement signals a positive step, the implementation details are yet to be finalised.

Taiwan in recent past has acknowledged the rising demand for labour in manufacturing, construction, agriculture, and other sectors, surpassing the country’s capacity to meet internally.

Consequently, the annual requirement for migrant workers has been steadily increasing, which has also provided the self-ruled island to look for ways to formalise ties with countries that do not recognise its existence due to their formal acceptance of the ‘One China Policy’ under which countries only recognised Communist-ruled China.

What influx of Indian workers in Taiwan will be like?

The initial phase will witness a small-scale pilot program, and based on its success, a larger influx of Indian workers may follow. However, the ministry did not specify the exact number, stating that Taiwan would determine the final figures.

Contrary to earlier speculations of permitting up to 100,000 Indian workers, Taiwan clarified that such figures were yet to be confirmed. 

Notably, India does not have formal diplomatic ties with Taiwan. However, a robust business relationship persists, with India actively encouraging Taiwanese tech companies to invest and manufacture within its borders.

(With inputs from agencies)



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