In 2024, for the first time ever, bilateral trade between India and Taiwan exceeded US$10 billion. And in the past six months alone, governments and businesses in the two countries have agreed on multipledeals that bring their semiconductor, tech, artificial intelligence, and industrial sectors even closer together, along with supply chains.

These new trade partnerships support Taiwan’s “New Southbound Policy” and India’s “Act East” and “Make in India” policies, with Taiwan alone investing US$4.5 billion in India since February 2024.

While the surge in Taiwanese investment in Indian companies is grounded in the economic dimension of the relationship, there is another dynamic taking place. Like most countries, New Delhi does…