1. MOEA Department of Investment Services (DOIS), Ministry of Economic Affairs September 8, 2014 Taiwan’s Economic Development and Cooperation with India

2. MOEA Contents I. Introduction II. Successful story of Taiwan’s economic development III. Taiwan – India trade and investment relations IV. Prospects for Taiwan – India economic cooperation V. Conclusion 2

3. MOEA I. Introduction 3

4. MOEA Taiwan Profile Small Yet Big Sources: Directorate General of Budget, Accounting and Statistics Executive Yuan, R.O.C Land 36,192 km 2 Population 23,377,517 (2014/01) GDP US$495 billion (2013) Per-capita Income US$21,153 (2013) Economic Growth Rate 2.09%(2013) ； 2.98% (2014/est.) Unemployment Rate 4.02% (2014/1) Inflation0.79% (2013) 0.76%(2014/01) Forex Reserves US$419.2 billion (2014/03) 4

5. MOEA II. Successful Story of Taiwan’s Economic Development 5

6. MOEA Export Expansion Policy (light industry) Era of Import Replacement and Export Expansion (heavy industry) Liberalization, Internationalization, and Systematization Policies (strategic industries, Hsinchu Science Park) Era of high-tech industry (10 major emerging industries) 2000 ～ present Globalized operations (developing knowledge- based economy) 1980s 1990s Import Replacement Policy 1950s (light industry) Development of Taiwan Economy 6

7. MOEA Economic Reconstruction Consumer Goods Industry Rapid Growth of Light Industry Capital & Technology Intensive Industries High-Tech Industries Industrial Restructuring 1960s1970s1980s1990s1950s1940s Successful Story of Taiwan’s Economic Development Knowledge Industries 2000s2010s 7

8. MOEA Year G.D.P. (US$ Bil.) Economy Growth G.D.P. Per Capita Unemp. Rate C.P.I. Foreign Currency Reserve (US$ Bil.) 20073,931.345.98%17,1543.9%1.80%270.31 20084,001.320.73%17,3994.1%3.53%291.71 20093,775.29-1.91%16,3595.9%-0.87%348.20 20104,281.869.32%18,5035.3%1.50%383.84 20114,651.874.41%20,0574.9%1.50%385.55 20124,752.571.48%20,4234.24%1.93%403.17 20134,891.322.09%20,9524,18%0.79%416.81 Taiwan’s Main Economic Indicators & Trends Source: Central Bank of the Republic of China (Taiwan) 8

9. MOEA How does Taiwan create economic miracles Since the 1960’s, hard work by small and medium enterprises, coupled with forward looking government policies, have helped Taiwan’s economy to perform brilliantly. Strategies of import substitution and export expansion have enabled Taiwan to spread its wings and soar. Taiwan has been the world’s biggest supplier of many products, creating a strong image for the Made-in- Taiwan label. Powered by industrial transition and upgrades, Taiwan’s foreign trade has soared to a series of record levels, increasing 1,531- fold from 1955 to 2012. Economic Miracle of Last Century 9

10. MOEA 1971~19801981~19901991~19992000~20042005~20062007~20082009~2012 Decoration Ship dismantling Footwear Electric fans Gourmet powder Umbrella Hat Tennis rackets Bicycle ABS resin Mini electronics Sewing machines Yachts Monitors Scanners Mother boards Notebook Computers IC packaging Wafer foundry Hub Record Optical Disk Mother Board Foundry Notebook PC SOHO Router LCD Monitor WLAN Cable Modem DSL Modem Optical Disk Driver IC Packaging Glass Fiber Network Interface Card ABS Copolymer Switch CDT Monitor PDA Servers (System & Pure MB) Mother Board IP Phones Notebook PC SOHO Router LCD Monitor WLAN WLAN NIC SOHO Routers DSL Modem VoIP Routers Blank Optical Disks IC Packaging LAN Switches IC Foundry Mask ROM ABS Copolymer Switch Diving Suits Netbook Mother board WLAN NIC Servers (System & pure MB) Notebook PC DSL CPE Cable CPE LCD Monitor PDA IP Phone CDT Monitor Large size LCD Panel VoIP Routers VoIP TA Notebook PC Mother Board LCD CDT Monitor WLAN NIC Digital Line (DSL) Cable Modem IP Phone VoIP Gateway Taiwan As No. 1 10

11. MOEA Enhancing Industrial Competitiveness Promoting Business Opportunities in International Market Strengthening Global Deployment Participating in Regional Integration Current Economic Strategy and Direction 11

12. MOEA 12 Taiwan is reinventing itself as:  A Center of Global Innovation;  A Hub for Regional Trade;  A Global and Regional Operating Base

13. MOEA III. Taiwan – India Trade and Investment Relations 13

14. MOEA  Bilateral trade between Taiwan and India amounted to US$6.17 billion in 2013, an increase of 2.76% compared to 2012.  Taiwan’s imports from India grew by 4.86% in 2013 to reach US$2.75 billion, while Taiwan’s exports increased by 1.13% to US$3.42 billion.  India is Taiwan’s 19 th trade partner in the world, accounts for 1.07% of Taiwan’s total trade amount. Bilateral trade Taiwan – India Trade & Investment Relations 14

15. MOEA Trade Between India & Taiwan (2004-2013) Million US$ 15

16. MOEA Major Items Exported to India (2013) 16

17. MOEA Major Items Imported from India (2013) 17

18. MOEA Investment between India & Taiwan Investment by India * Investment Commission, MOEA Investment by Taiwan *Economic Division, TECC in New Delhi # of Investments 334Around 80 Amount44.5 million US$Around 1.3 billion US$ Location Taipei, Taichung, Kaohsiung Delhi, Rajastan, Haryana, Gujarat, Maharahtra, Tamil Nadu, Andhra Pradesh Categories Trade, Restaurant, Retail, Services Electronic, Machinery, Engineering, Banking, Car Parts, Footwear, etc. Main Investors Tata Consultancy, Profitop, Tech Mahindra, Pointrfedtech, etc. Foxconn, CINDA Engineering, Benq, MSI, TECO, China Steel, Yang Ming Line, Lotus Footwear, D-Link, TSRC, etc. 18

19. MOEA Taiwan Partnership of Progress & Innovation World ’ s Top Brands from Taiwan & Now in India 19

20. MOEA IV. Prospects for Taiwan – India Economic Cooperation 20

21. MOEA Institutional Framework  2002.10 Investment Protection & Promotion Agreement  2011.7 Avoidance of Double Taxation Agreement  2011.7 Customs Cooperation Agreement  2013.3 ATA Carnet Agreement  Exchange of Delegation  Regular Dialogue 21

22. MOEA Advantages - India Abundant Human and Nature Resources Ideal Base for Mass Production Huge and High Growing Domestic Market Strategic Location – between South East Asia and Gulf Countries 22

23. MOEA Advantages - Taiwan Comprehensive Industrial Supply Chain Global Market Channel Strong R&D, Abundant Capital Proximity to Greater China Market 23

24. MOEA Areas of Cooperation  India – Taiwan’s Target Market for Trade and Investment Diversification  Industries in India and Taiwan are Complementary in Nature 24

25. MOEA Areas of Cooperation Taiwan’s Hardware Manufacturing + India’s Software Engineering ICT Product Semi-Conductors Intelligent Portable Devices 25

26. MOEA Areas of Cooperation Taiwan + India Infrastructure Construction Food Processing Automobile Components & Parts Machinery Textile & Garment 26

27. MOEA V. Conclusion 27

28. MOEA Conclusion  Mutual Benefits Companies from India and Taiwan can cooperate through strategic alliances, technical cooperation, mergers, etc. to mutually benefited from:  Manufacturing of high-quality and competitive products;  Exploring mutual and global markets. 28

29. MOEA Human and Natural Resources Base for Mass Production Huge and Growing Domestic Market Strategic Location India Industrial Supply Chain Management Experience Strong R&D, Capital Asia-Pacific Logistic Hub Taiwan WIN – WIN Strategy Global Market 29

30. MOEA Thank you! For further information dois@moea.gov.tw