Abstract
Challenges in the
Foxconn-Vedanta Joint Venture highlight the necessity for nuanced
cross-cultural partnerships and the proposed India-Taiwan Migration Pact aims
to fortify exchange, collaboration and trade. While India’s ‘Act East’ policy
strengthens Indo-Pacific stability, emphasising strategic priorities, it would
have to navigate unique geopolitical challenges for both countries. Shared
cultural and religious beliefs between Taiwan and India can serve as potential
collaboration bridges, fostering strategic communications and geopolitical
collaborations for a more interconnected world.
Introduction
Taiwan has
enormous appetite to expand ties with India”.1 Dr. Jaushieh Joseph Wu, Taiwan’s Foreign
Minister, made this significant statement addressing the prospectors in India.
Taiwan is encouraging its companies to shift their production facilities to
India if their present markets lose profitability.
It is always crucial to collect
comprehensive data, market research, understand legal and regulatory aspects,
and assess cultural norms before starting a business in a new country. India
and Taiwan will surely adapt to the new market, becoming aware of risks or
trends and plan wisely for market entry. Though the process is long and
arduous, it promises productivity and is already overdue. It will require
patience, persistence, an understanding of mutual needs and the perspective of
a human centric approach to a commercial issue, which will bolster
international cooperation and national security for both nations.
Case study analyses in this paper
attempts to understand the growth trajectory of India-Taiwan relationships and
offers a bouquet of options to contribute to such an alliance and strengthen
national security without affecting the diplomatic positions taken on the
global stage.
Foxconn
Case
Hoping
to bask in the Indian Government’s policy announcement for electronics
manufacturing and Postal Life Insurance scheme, the Hon Hai Technology Group
(Foxconn) and Vedanta formed a Joint Venture (JV) company in 2022 to
manufacture semiconductors in India. The JV collapsed in Jul 2023. Foxconn was
guarded in explaining its pull out, attributing it to the ‘growing pains’ of
investing in a ‘new geography’2 and leaving ‘to explore more diverse
development opportunities’.3
Interestingly,
Foxconn
already has factories in Andhra Pradesh and Tamil Nadu that have achieved a
turnover of close to USD 10 bn on an annual basis.4 This Taiwanese company is also
exploring options to make India its third global hub for electric vehicle
production. Foxconn’s decision to continue with the Indian market indicates
profitability, and it is searching for other semiconductor manufacturing
options, one such being a joint bid with French-Italian Company ST
Microelectronics N.V.5 Vedanta is also exploring new possibilities,
including splitting the company6 to
offer ‘better options to foreign investors’.
So, what went wrong? A stable and
profitable JV necessitates rich human resources (tangible), local market
knowledge (intangible), business networks, governmental networks, company
control and local partner’s international experience.7 The challenge could also be attributed to
either a shortage of skilled personnel or the failure of a host partner to
provide the expected infrastructure and support. While the latest Indian
legislations of Digital Personal Data Protection Act and Anusandhan National
Research Foundation Bill provide incentives and encourage technology growth in
India, foreign companies have to be accepted and recognised by the society.
They have to seek legitimacy by complying with local rules and social norms.8 This settling down process is a cognitive
process in which the foreign entity expects a major contribution from the local
partner. Though as part of initial business intelligence, the ‘local geography’
is an intrinsic knowledge and is difficult to acquire, if the venturing
companies are fundamentally different and unaccepting in their cohabitation
models. In societies that are primarily different from one another as in the
case of India and Taiwan, such differences will surface quickly and fatally. A
collaboration between a highly ordered, disciplined and noiseless (literally)
society like Taiwan and a loud, chaotic (cosmic level chaos)9 and unorganised Indian one is challenging. In
fact, to an Indian visitor, Taiwan, a highly disciplined society, displays a
comical aspect in its unwavering dedication to order. The way out would be to
understand each other, as PM Modi observed it long ago by providing ‘Better
Golf Courses’10 to Japanese Chief Executive Officers and
investors in 2014.
Trade
Analysis
Economically,
India and Taiwan developed strong bilateral relations with the establishment of
the India Taipei Association in Taipei and the Taipei Economic and Cultural
Centre (TECC) in New Delhi in 1995. Economic interactions gained momentum in
the past decade with several bilateral agreements. India now ranks as Taiwan’s
14th largest export destination and 18th largest source of imports.11 The exports to Taiwan constitute mineral
fuels, aluminium, iron, steel, organic chemicals, and plastics, while the
imports consist of plastics, electronic integrated circuits, organic chemicals
and electrical machinery. 106 Taiwanese companies currently operate in India,
with investments of USD 1.5 bn across various sectors, including information
technology, medical devices, and automobile components.12 The table below gives out the Export-Import13 status between two countries with an overall
increase in export by 67.06 per cent and import by 139 per cent since 2016.
Table 1
|
Financial
|
Export |
Year-over-Year Export |
Import |
Year-over-Year
Import |
Balance |
|
2022-23 |
21107 |
2.70 |
66479 |
42.92 |
-45372 |
|
2021-22 |
20552 |
71.16 |
46515 |
55.89 |
-25963 |
|
2020-21 |
12007 |
1.03 |
29839 |
4.13 |
-17832 |
|
2019-20 |
11885 |
-35.83 |
28654 |
-10.46 |
-16769 |
|
2018-19 |
18520 |
33.21 |
32001 |
26.47 |
-13480 |
|
2017-18 |
13903 |
-5.21 |
25302 |
20.05 |
-11399 |
|
2016-17 |
14667 |
— |
21076 |
— |
-6410 |
The limited people-to-people connection
between India and Taiwan will pose a significant impediment to technological
transfer and manufacturing. Despite being home to thriving technological
ecosystems, fostering stronger ties in this domain is essential for mutual
growth. Taiwan’s companies seek access to the vast Indian market, and Indian
firms will benefit from Taiwan’s global supply chain networks. In this era of
shifting global alliances, forging strong technological partnerships can help
both nations strengthen their geopolitical positions. To overcome this hurdle,
India and Taiwan are expected to sign a Migration and Mobility Pact and
strengthen ties.14 This pact, one of many India has with other
countries, will promote the mobility of students, professionals, skilled
workers, researchers, and lecturers between the two countries. This pact will
also work to leverage the respective strengths and resources, aiming to achieve
more than what is individually attainable.
Neighbourhood
Policies
Taiwan
introduced the New Southbound Policy15 (NSP) to strengthen Taiwan’s relations with
its neighbours. It addresses a huge swathe from Southeast Asia to Australia and
New Zealand. Taiwan aims to reduce risk and overdependence on any single
market. Highlights of the NSP include the following:
n Economic, trade collaboration and regional
connectivity are needed to reduce single market dependency and integrate deeply
into the regional economy.
n Assist small and medium-sized Taiwanese
enterprises to expand.
n Expand training programs for young
scholars, students, and industry professionals during talent exchange to
complement the strengths of partner countries.
n Resource sharing, promoting agricultural
cooperation, increasing two-way tourism, and attracting residents of New
Southbound countries for top-quality health care and work.
India’s
Act East Policy (AEP) focuses on strengthening relations with the extended
neighbourhood in the Indo-Pacific Region16 including Southeast Asia, East Asia, South
Asia and Oceania to promote economic cooperation, cultural ties and develop
strategic relationships in the region. The AEP emphasises following:
n Continental neighbourhood with specific
focus on physical regional connectivity, regional growth and development.
n Enhance people to people contact.
n Developmental cooperation through lines of
credit, grants-in-aid and capacity building programs.
n Scholarships for students and professionals
to build human bridges.
n Human centric efforts to restore and
renovate heritage cultural sites creating endearing relationships with India.
n Increase the technology threshold of the
neighbourhood by setting up a satellite tracking and telemetry centre, software
development institute and agricultural research.
While
both policies aim to enhance regional influence, they operate in different
geopolitical contexts.
n Taiwan’s NSP is implemented in the context
of cross-strait tensions with China, which can create diplomatic challenges,
and India’s AEP seeks to secure more opportunities in this environment,
creating balanced aspiration in Southeast Asia and the Indo-Pacific.
n India’s AEP places an emphasis on
trans-regional cooperation and including Taiwan in this conundrum will require
substantial diplomatic and negotiation skills.
n Promoting home-grown industries in the
target nations may become a conflation point, which India-Taiwan will have to
avoid.
Xiângsì
(Similar)
Understanding
culture through direct people-to-people contact offers a more authentic and
profound insight compared to traditional market research. The personal,
unbiased, and immersive nature of such interactions provides a deeper
understanding of cultural nuances. One notable similarity between Taiwan and
India is the prevalence of gods and temples. Both nations boast an abundance of
temples, often surprisingly large, dedicated to various deities. The rituals
associated with temple visits, such as preparation, offering of gifts, and
circumambulation, exhibit uncanny resemblances. The presence of city gods and
their consorts in almost all temples, and use of incense sticks, highlights the
shared reverence for divine feminine figures. While India and Taiwan have
distinct cultural practices and religious beliefs, their mutual appreciation
for female deities underscores the universal appeal of both cultures. In India,
goddesses like Durga, Lakshmi, and Saraswati hold esteemed
positions, while Taiwan venerates goddesses like benevolent Guanyin17 (Longshan Temple in Taipei is devoted to her)
and protector Mazu. These female deities are associated with various
facets of life, from motherhood to wisdom, power, and protection, and their
worship is deeply ingrained in daily life, creating a cultural commonality
between the two nations.
Anthropomorphism is another shared
cultural trait between Taiwan and India. Both cultures attribute human
characteristics, emotions, and behaviours to deities, making them more
approachable and relatable. For instance, in Taiwan, the Love God Yue Lao,18 known as the ‘old man under the moon’, is
characterised by a long white beard, yellow robes, and a friendly demeanour. He
is believed to possess a ‘book of marriages’ and is invoked to find and bind
individuals to their life partners. Similarly, in India, Lord Krishna is
worshipped as an infant god named Laddu Gopal, cared for
like a child and adorned with daily outfit changes, a bed, and regular baths.
This anthropomorphic approach fosters a close connection between devotees and
their gods, enabling them to seek guidance and blessings without fear of
judgment bringing the gods closer to the people. As two separate nations
decidedly devout to the gods there exists a possibility to celebrate their
births, marriages, and victories together or concomitantly in gaiety and for
perpetuity.
n The birthday of the benevolent mother
Goddess Guanyin19 is celebrated throughout the various temples
in the country during Feb and Mar. Effigy of Mazu, Taiwan’s most
important sea goddess and female deity, is carried by believers throughout
Western Taiwan temples during Dajia Mazu pilgrimage20 in Apr.
n Indian gods are celebrated throughout the
year with great festivities. Jagannath Rath Yatra (Odisha, in Jul), Thrissur
(Kerala in Apr/May), Karaga (Karnataka), Nanda Devi (Uttrakhand
in Sep), Royal Rath Yatra of Lord Padmanabhaswamy of Travancore
(Kerala in Mar/Apr ) are a few.
There are abundant cultural, seasonal
and regional festivities in the two countries. Indigenous people, known as
‘tribal’ in India, celebrate their unique culture and are an integral part of
the respective countries. Joint investments in the land of these people in north eastern
India and eastern Taiwan to
support indigenous crafts and practices will bring the ancient tribes closer to
each other, as will the synchronised celebrations of their histories and
cultures.
n Taiwan’s Keelung Ghost Month Pole
Climbing21 (Jul and Aug) honours ancestors who died
protecting their families. Yimin Festival celebrates Haka22 warriors in July.
n In India, Hola Mohalla23 (Punjab in Mar) commemorates Sikh valour,
initiated by Guru Gobind Singh. Keil Poldu24 (Karnataka
in Sep) honours the Kovada clan. Hornbill25 Festival (Nagaland in Dec) celebrates Naga
warriors and their rich history.
n Taiwan’s Dragon Boat Festival (Jan)
parallels Kerala’s Snake Boat Festival (Aug and Sep). Taiwan’s Mid-Autumn
Festival aligns with India’s Onam, Ladakh, Ziro, Pushkar, and Rann of
Kutch festivals (Aug to Nov).
n Similar community activities exist in both
nations. Bu Dai Xi26 (glove puppetry in Taiwan), Tholpavakoothu27 (shadow puppetry in Kerala), and Sakhi Nach28 (glove puppetry in Odisha) connect to folklore
and history. Indian Panchtantra tales also resonate with Taiwanese
storytelling.
n Traditional Chinese Medicine29 emphasising balance and vital energy (Qi),
aims for harmony and balance in Yin and Yang. It seeks equilibrium and a
healthy flow of Qi, similar to Ayurveda30 treatments in India that focus on doshas
(vata, pitta, kapha) aiming to balance the human body and emphasise
prevention over treatment.
n Traditional performing arts like Taiwan’s
Traditional Opera, Theatre, and Dragon Dance align with India’s diverse
classical dance forms like Bharatanatyam, Kathak, and Kathakali,
reflecting shared artistic expression.31
National
Security
Given
India’s substantial interests in the Indo Pacific region, India is already
paying constant and careful attention to new relationships. The security
dynamics in the region, driven by the AEP, underscores the critical importance
of India’s role in contributing to regional stability and safeguarding national
security. As per media reports,32 defence forces have been studying the impact
of the Taiwan crisis since Aug 2023. This study will suggest newer thoughts and
accomplishments, much in line with strategic autonomy, which has redefined
India’s arrival on the global stage and actions in ‘interest of Indian people’.
An academic paper by a senior diplomat33 too suggests the exploration of
‘possible policy’ during such an event. Another diplomat34 observes that there are restrictions to what
India can do and suggests a ‘limited role’ and proactive defence of its
territorial interests and the security of supply chains in the crisis. People-to-people
connections suggested in this paper will play a vital role in communicating
intent and concerns to improve India’s national security, serving as a critical
factor for global aspirations. These connections foster diplomacy, cultural
exchange, and economic collaboration, all of which are essential components of
a comprehensive national security strategy.
Conclusion
As
with people, Taiwanese and Indian foods are quite different too. Taiwanese
cuisine tends to be light, loaded with seafood and tofu dishes, almost uncooked
with a hint of flavours. In contrast, Indian food is known for its strong
spices, mixed vegetables and meats and curries. This culinary diversity also
imprints on people-to-people connections. Understanding and appreciating preferences
can sometimes bridge hurdles to the stark contrasts in flavours and
ingredients, thus, there is a special need to foster additional people
relationships that are benign in form but effective in result. Collaborations
on shared festivities will allow both nations to express their rich cultural
heritage, traditions, and artistic expressions to a broader audience. These
events will serve as a bridge between the two countries, attracting tourists
and locals alike, encouraging them to explore and appreciate each other’s
unique customs, and build bridges of friendship and cooperation. Celebrating
shared heritage and festivals reinforces the idea of common threads that
connect people despite geographical distances.
The exploration of people-to-people
relationships as a means to increase collaboration has profound implications
for national security too. When nations introduce their people to each other,
it enhances strategic communications, diplomatic relations and promotes better
geopolitical collaborations. These human connections and bridges, serve as the
bedrock of a more secure nation, fostering a network of allies, allies that can
be counted on during times of crises. The role of people-to-people
relationships in the realm of national security is thus indispensable, as it
empowers nations to fortify their security apparatus while striving for a more
peaceful, interconnected, and secure world.
Endnotes
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accessed on 23 July 2023.
2Michael Kugelman, ‘Why Did Foxconn
Pull Out of Its India Deal?’ 12 July 2023, https://foreignpolicy.com/2023/07/12/india-foxconn-apple-semiconductor-tech-policy/#cookie_message_anchor,
accessed on 18 September 2023.
3Michelle Toh, ‘Foxconn pulls out
of $19 billion chipmaking project in India’, 12 July 2023,
https://edition.cnn.com/2023/07/11/tech/india-foxconn-exit-vedanta-chip-joint-venture-intl-hnk/index.html,
accessed on 18 September 2023.
4https://www.moneycontrol.com/news/business/on-pm-modis-birthday-foxconn-promises-to-double-india-business-and-employment-11383881.
html, accessed on 18 September 2023.
5Foxconn in talks with
STMicroelectronics for semicon unit in India, 07 September
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ece, accessed on 18 September 2023.
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https://www.thehindubusinessline.com/companies/vedanta-plans-to-split-each-business-into-separate-entities/article67234971.ece,
accessed on 18 September 2023.
7Claudia Knoll, ‘Key Criteria for
Selecting a Joint Venture Partner on Emerging Markets’, 2014,
https://www.grin.com/document/289007
8https://iopscience.iop.org/article/10.1088/1757-899X/688/5/055059/pdf,
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9Sadguru of Isha Foundation
mentions Indian culture, apparent disorganised but still systematically
working, a society with surface disharmony, but something deep which holding
things together. He goes on to mention it – ‘not the government, the law, or
the infrastructure
but something in people which still keeps things rolling.’
https://isha.sadhguru.org/in/en/wisdom/article/indian-culture-harmony-in-disorganization,
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23https://www.allaboutsikhs.com/sikh-way-of-life/sikh-festivals/the-sikh-festivals-holla-mohalla/,
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24https://www.kodavas.in/puthari/,
accessed on 23 July 2023.
25https://www.hornbillfestival.com/,
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26https://michaelturton.blogspot.com/2016/01/bu-dai-xi-origins.html,
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27https://www.keralatourism.org/kerala-article/2011/tholpavakoothu-shadow-puppetry/130,
accessed on 23 July 2023.
28https://www.india9.com/i9show/Sakhi-Natch-44881.htm,
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29https://www.webmd.com/balance/what-is-traditional-chinese-medicine,
accessed on 24 July 2023.
30https://main.ayush.gov.in/ayush-systems/ayurveda/treatment/,
accessed on 24 July 2023.
31https://www.indiaculture.gov.in/dance,
accessed on 24 July 2023.
32https://bharatshakti.in/what-should-india-do-if-china-attacks-taiwan-indian-military-orders-study/,
https://www.taipeitimes.com/News/taiwan/archives/2023/09/09/2003805978,
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33What Should India Do Before the
Next Taiwan Strait Crisis? Vijay Gokhale, 17 April 2023
https://carnegieindia.org/2023/04/17/what-should-india-do-before-next-taiwan-strait-crisis-pub-89515,
accessed on 08 September 2023.
34Taiwan,
a Malacca blockade and India’s options, Sujan Chinoy, 09 November 2023,
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accessed on 10 November 2023.
@Brig
Pawan Bhardwaj is an Infantry Officer with 31 years of service
experience. He has served in operational areas of Siachen Glacier, Line of
Control, Counter Insurgency, and Deserts. He commanded an Infantry Battalion in
Counter Insurgency and an Infantry Brigade along the Line of Control in the
High Altitude Area. A graduate of the Defence Services Staff College, he has
held instructional appointments at The Army War College and the Infantry
School. His reading interests include Technology trends, Information Warfare
and Military Training. He is now pursuing a Research Fellowship on Employment
of Artificial Intelligence at Tactical Level with the United Service
Institution of India,
New Delhi.
Journal
of the United Service Institution of India,
Vol. CLIII, No. 634, October-December 2023.