Free trade agreements (FTAs) are important instruments in today`s global economy as they help to facilitate trade, eliminate trade barriers and enhance economic ties between countries. India and Taiwan are two rapidly growing economies that have been exploring deeper economic cooperation through trade agreements. In this article, we will examine whether there is any free trade agreement between India and Taiwan.

As of now, India and Taiwan do not have a free trade agreement. Despite their growing economic ties, the two countries have yet to sign an FTA. Discussions on an FTA between India and Taiwan began in 2011 when both countries signed a comprehensive economic cooperation agreement (CECA). The CECA sought to enhance economic ties, increase investment flows and promote bilateral trade between the two nations. However, even after several rounds of discussions, the CECA did not lead to a comprehensive FTA.

There are a few reasons why India and Taiwan have not yet been able to sign an FTA. One of the main reasons is geopolitical tensions. China, which claims Taiwan as its territory, views any economic cooperation between Taiwan and other countries as a threat to its sovereignty. Thus, India’s growing economic ties with Taiwan have not gone down well with China. This has made India cautious about signing any formal trade agreement with Taiwan.

Another obstacle to India-Taiwan FTA negotiations is the asymmetry in their economies. India is a larger and more diversified economy, while Taiwan is smaller and relies more on exports. India is also wary of potential dumping of cheap goods from Taiwan flooding its markets, which could hurt local businesses.

Despite the challenges, some experts believe that a free trade agreement between India and Taiwan could be beneficial for both countries. An FTA could help to increase bilateral trade, especially in sectors such as electronics, textiles, and automobile components, where Taiwan has expertise. India, in turn, could offer access to its large market, especially in areas such as IT services, pharma, and agriculture.

In conclusion, as of now, there is no free trade agreement between India and Taiwan. However, with growing economic ties, there remains a possibility of an FTA in the future. While there are challenges and obstacles, an FTA could help to deepen economic cooperation and enhance trade between the two countries. It remains to be seen whether India and Taiwan can overcome the hurdles and sign a free trade agreement in the future.